Week InReview | Bondholders adapt to new world year after liquidity meltdown | SEC reviewing exchange-traded funds, circuit breakers | More countries likely to agree to mandatory arbitration | Muni dealers could see amped-up disclosure duties | Let's Recap (In Case You Missed It) | Binge Reading Disorder
Friday, October 16, 2015
Let's recap
In case you missed it . . .
SEC reviewing exchange-traded funds, circuit breakers
Could use data to tweak exchange rules
(Oct 15) The Securities and Exchange Commission is reviewing exchange-traded product pricing and exchange circuit breaker rules in the wake of extreme volatility in equity markets that occurred Aug. 24, when the drastic swings in ETPs caused more than 1,000 trading halts. "We're exploring whether the behavior of ETPs can be explained by uncertainty in the pricing of the underlying assets, the nature of liquidity demand and supply for ETPs and/or the low trading volume in many individual ETPs," Chair Mary Jo White said at a meeting of the agency's Investor Advisory Committee. The Aug. 24 volatility could alter how the agency regulates exchanges, including circuit breaker rules that are designed to rein in trading in times of wild price swings. "We didn't seek seek out this mini-stress test on August 24, but it has yielded a lot of very useful data for analysis," adding that the agency could use the data to tweak exchange rules forbidding trades outside certain price bands in times of market turmoil. The so-called limit up limit down rules were approved by the SEC as a pilot program, and White said the data could affect how the rules could change if made permanent. Industry executives say rules for U.S. markets need to be updated because they aren't designed to cope with the proliferation of ETFs, which have become a $2 trillion business.
More countries likely to agree to mandatory arbitration
Treasury has 15-point plan to help combat global tax evasion
(Oct 13) The number of countries that have agreed to mandatory binding arbitration in their bilateral tax treaties is likely to increase, but political support is key to that effort, the deputy assistant secretary for international tax affairs in the Treasury's Office of Tax Policy says. The Treasury official also says the U.S. plans to continue work in 2016 on the multilateral instrument that is part of the 15-point plan designed to help countries combat global tax evasion, and intends to release the updated U.S. model tax treaty by the end of 2015.
Muni dealers could see amped-up disclosure duties
MSRB to host free webinar on proposed rule
(Oct 9) The Municipal Securities Rulemaking Board will host a free webinar on a proposed rule that would require municipal securities dealers to tell retail customers how much they marked up securities in certain principal transactions. Specifically, under the proposed changes to MSRB Rule G-15, muni dealers acting as principal would be required to disclose to retail customers their mark-up from the prevailing market price of a municipal security if the dealer makes a corresponding trade within two hours of the customer transaction. The webinar will take place Oct. 29 from 3 to 4 p.m.
Binge reading disorder
Hand-curated, chosen with love
  • There's a revolving door between Washington and Wall Street. Here are some of the biggest names to pass through  (Business Insider)
  • Interactive Map: The places in the world where governments have lost control (Bloomberg)
  • Derivatives 101: Great Financial Tool Or Sinister Financial Time Bomb?(LinkedIn Pulse)
Transparency.
Inclusiveness.
Consensus.