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Broker-dealers can breathe a collective sigh of relief. The Financial Industry Regulatory Authority, Inc. (FINRA) has filed a rule change with the Securities and Exchange Commission (SEC) to delay the effective date of certain changes to its maintenance margin rule for Covered Agency Transactions (e.g., to-be-announced transactions, specified pool transactions, transactions in collateralized mortgage obligations) until June 25, 2018.
On July 11, the Basel Committee on Banking Supervision (Basel Committee) published a revised regulatory capital framework for securitizations (Revised Framework) that incorporates final standards for the alternative and more favorable regulatory capital treatment for “simple, transparent, and comparable” securitizations (STCs).
Senators Elizabeth Warren (D-MA) and Mark Warner (D-VA), along with Representative Elijah Cummings (D-MD), introduced new legislation that would amend the Commodity Exchange Act (CEA) to require the Commodity Futures Trading Commission (CFTC) to impose fees, increase civil penalties, mandate that FX swaps and FX forwards be treated as swaps (reversing the Treasury Determination), and tighten swap data reporting and capital requirements, among other new obligations.
In the spirit of the new year, we decided to take our Ouija board out of the attic and venture a few predictions for 2016 in financial services regulation.
Regulatory capital requirements are dynamic, not static, in nature.