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SEC Adopts Rules To Improve Risk Management In Clearance And Settlement And Facilitate Additional Central Clearing For The U.S. Treasury Market

Date 13/12/2023

The Securities and Exchange Commission today adopted rule changes to enhance risk management practices for central counterparties in the U.S. Treasury market and facilitate additional clearing of U.S. Treasury securities transactions. The rule changes update the membership standards required of covered clearing agencies for the U.S. Treasury market with respect to a member’s clearance and settlement of specified secondary market transactions. Additional rule changes are designed to reduce the risks faced by a clearing agency and incentivize and facilitate additional central clearing in the U.S. Treasury market.

SEC Adopts Rules To Improve Risk Management In Clearance And Settlement And Facilitate Additional Central Clearing For The U.S. Treasury Market

Date 13/12/2023

The Securities and Exchange Commission today adopted rule changes to enhance risk management practices for central counterparties in the U.S. Treasury market and facilitate additional clearing of U.S. Treasury securities transactions. The rule changes update the membership standards required of covered clearing agencies for the U.S. Treasury market with respect to a member’s clearance and settlement of specified secondary market transactions. Additional rule changes are designed to reduce the risks faced by a clearing agency and incentivize and facilitate additional central clearing in the U.S. Treasury market.

Statement On Final Rules Regarding Treasury Clearing, SEC Chair Gary Gensler, Dec. 13, 2023

Date 13/12/2023

Today, the Commission is considering whether to adopt rules regarding the central clearing of U.S. Treasury securities. I am pleased to support these rules because they will help to make this vital part of our capital markets more efficient, competitive, and resilient.

Statement On PCAOB 2024 Budget, SEC Chair Gary Gensler, Dec. 13, 2023

Date 13/12/2023

Today, the Commission is voting to approve the 2024 budget of the Public Company Accounting Oversight Board (PCAOB). I support this $385 million budget—supporting a modest two percent increase in headcount—because of the important role the PCAOB plays in protecting investors and facilitating capital formation.

SIFMA And SIFMA AMG Statements On SEC Treasury Clearing Rule

Date 13/12/2023

SIFMA and SIFMA AMG today issued the following statements on the final rule issued by the SEC related to clearing for the U.S. Treasury Market:

Rob Toomey, managing director, associate general counsel and head of SIFMA’s capital markets practice said:

“We are still reviewing the final rule with our members and in particular those sections that appear to reflect our comments on ways to improve the rule.  As a general matter, while we are supportive of enhancing market resiliency including through increasing central clearing, we continue to believe the Commission should have adopted a staged approach to permit impact analysis to avoid introducing unnecessary risks to the Treasury market."

Opening Statement Of CFTC Chairman Rostin Behnam For The December 13th Commission Open Meeting

Date 13/12/2023

Good morning, and welcome to the Commission’s final public meeting of 2023.  Today, the Commission will consider three matters—two notices of proposed rulemaking and one registration application.  It has been a very busy year at the Commission.  In February, I laid out an agenda aimed at continuing a longer trajectory of refining policy and regulation to alleviate unnecessary burdens and uncertainty while promoting competition and innovation in the U.S. and abroad.[1] Today we continue along that course with important goals in mind: protecting customers and ensuring safe, transparent, and resilient derivatives markets.

Finansinspektionen Leaves The Countercyclical Buffer Rate Unchanged

Date 13/12/2023

In accordance with its assessment in the most recent stability report, FI is leaving the countercyclical buffer rate unchanged in the fourth quarter. The buffer rate of 2 per cent, which was applied starting on 22 June 2023, shall thus continue to apply. The countercyclical buffer guide is calculated at 0 per cent.

BIS: Basel Committee Publishes Assessment Reports On The Implementation Of Its Global Standards In Mexico And Switzerland

Date 13/12/2023

• Basel Committee finds Mexico compliant with its Net Stable Funding Ratio standard and large exposures framework, and largely compliant with its Liquidity Coverage Ratio.
• Assessments find Switzerland largely compliant with the Committee's Net Stable Funding Ratio standard and large exposures framework.
• These publications form part of the Committee's Regulatory Consistency Assessment Programme.

Finansinspektionen: Aros Receives Warning And Administrative Fine

Date 13/12/2023

Finansinspektionen has decided that Aros Kapital will receive a warning and an administrative fine of SEK 45 million.

BIS - Interest Rate Risk Of Non-Financial Firms: Who Hedges And Does It Help?

Date 13/12/2023

Key takeaways

• Natural language text analysis of 80,000 company financial statements published by 14,000 non-financial firms in the euro area, United Kingdom and United States shows that around 50% of firms with variable rate debt hedge their interest rate risk.
• Firms that hedge interest rate risk tend to be larger and have smaller cash buffers and lower equity valuations.
• When interest rates rise, firms that hedge their interest rate risk experience a smaller negative impact on their interest coverage ratios and market valuations. They are also better able to maintain the size of their workforce.
• Our analysis highlights the importance of, and the challenges in, getting a comprehensive overview of hedging activity among non-financial firms.