Week InReview:  October 3, 2014

IN THE INDUSTRY

SIFI Designation for Asset Managers: (Oct. 3) Former SEC Commissioner Paul Atkins says "capital markets are risk markets, and investors' risks are not the same as banking risks ... we should not subject our capital markets to central planning by the Fed." Read more.

'Resolution Stay,' Continuity For Clearinghouses: (Oct. 2) The CEO of ISDA - the main industry group for the $700 trillion global swaps market - said that key priorities of his group are focusing on completing a "resolution stay" protocol, developing principles for clearinghouse resolution and recovery and helping facilitate an outcomes-based cross-border regulatory regime that relies on substituted compliance. Read more.

BlackRock's Fink Says Regulators Drove Move to Risky Assets: (Oct. 1) Central banks and regulators, including BIS, Financial Stability Board, pushed investors toward riskier assets through loose monetary policy, tight financial regulation, BlackRock CEO Larry Fink said. Read more.

ON THE HILL

Corporate Inversions: (Oct. 2) The U.S. is looking at a "wide range of options" on inversions, further U.S. Treasury action on inversions won't eliminate them, and "the only way to really stop them" is with legislation, White House economic adviser Jason Furman told Bloomberg TV. Read more.

AT THE AGENCIES

Libor Needs Change; Room to Manipulate Derivatives (Oct. 2) A broader definition of Libor would strengthen financial system, while "powerful incentive" remains for individuals to manipulate reference rate for many derivatives contracts, NY Fed President William Dudley said. Read more.

Leveraged Loans Oversight: (Oct. 1) The Fed is now looking at loans each month. Supervisors have shifted tactics over the past several weeks and are examining loans as they are made, showing a new urgency in avoiding the kind of overly risky lending that was blamed for igniting the financial crisis. Read more.

FX Revamp to Deter Rigging: (Sept. 30) A panel of global regulators, responding to a manipulation scandal that has shaken the financial industry, has backed measures to make it harder for traders to exploit key benchmarks in the $5.3 trillion-a-day currency market. Read more.

Cross-Border MOU: (Sept. 30) The CFTC and the Australian Securities and Investments Commission (ASIC) have signed a memorandum of understanding to exchange information on the supervision and oversight of regulated entities that operate in the U.S. and Australia. Read more.

Fiduciary Duty for BDs, IAs: (Sept. 30) SEC Commissioner Michael Piwowar, stating his own views, suggested disclosure changes to clear up investor confusion over fiduciary duty for broker-dealers and investment advisers that would stem investor confusion over the two professions. SEC commissioners should receive an analysis early next year of the potential costs and benefits of imposing a fiduciary duty on broker-dealers. Read more.

SEF Registration for DCOs: (Sept. 29) In response to a request by ICE Clear Credit LLC and CME Group Inc., CFTC staff extended existing no-action relief related to derivative clearing organizations and their potential obligation in certain circumstances to register as SEFs. Read more.

This is not an all-inclusive list of congressional, agency and market participant actions related to these issues. It is a snap-shot of what we believe is of most interest to institutional investors. Some links are to subscriber-only sites. 

Be sure to check our website for this InReview, upcoming events, and all our INVESTORS updates.  www.association.institutionalINVESTORS.org