- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-12-14T19:11:00
The Securities and Exchange Commission (SEC) adopted a rule change Wednesday aimed at reducing the threat of systemic risk to U.S. Treasury securities by facilitating additional central clearing in the market.
The rule, approved by a 4-1 vote, “require(s) that covered clearing agencies in the U.S. Treasury market adopt policies and procedures designed to require their members to submit for clearing certain specified secondary market transactions,” the SEC said in a press release. Its aim is to increase the proportion of transactions that are centrally cleared, a figure that currently comprises about 20 percent of the market.
“Having such a significant portion of the Treasury markets uncleared … increases system-wide risk,” said SEC Chair Gary Gensler in a statement. The rule changes will “reduce risk across a vital part of our capital markets in normal times and stress times,” he said, benefitting investors, issuers, and the markets.
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The Securities and Exchange Commission’s latest regulatory agenda remains packed with proposals in the final rule stage, most notably the agency’s climate-related disclosure package.
The Securities and Exchange Commission moved quickly to adopt an unfulfilled mandate of the Dodd-Frank Act to prevent the sale of certain securities if there is a conflict of interest.
The Securities and Exchange Commission adopted amendments to its rule covering fund names to ensure the regulation is appropriate to address new investment drivers, namely environmental, social, and governance matters.
Financial institutions holding Russian sovereign assets that have not reported them to the Treasury Department’s Office of Foreign Assets Control are now required to do so by Aug. 2.
Compliance officers should take note of proposed laws in the U.K. with the newly elected Labor government setting the legislative agenda in the King’s Speech last week, promising consultations on enhanced employee rights and a higher minimum wage.
Four federal banking regulators have joined the Treasury Department’s Financial Crimes Enforcement Network in issuing a notice of proposed rulemaking that would require financial institutions to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs.
