IMN: US regulation here to stay
01 February 2017 Florida
Image: Shutterstock
The securities lending industry shouldn’t expect the newly-installed Trump administration to take the axe to banking regulation any time soon, attendees of IMN's Beneficial Owners' International Securities Finance & Collateral Management Conference heard.
“I don’t think we will see repeal of regulations,” said a legal expert panellist.
The panellist added the caveat that frameworks such as the new stay protocols are largely based on authority handed down from the US Dodd-Frank Act, meaning any amendments that may come will have significant knock-on effects.
An established market authority on the panel added: “The Dodd-Frank Act isn’t going away anytime soon, despite what you read in the paper.”
A panellist with connections to policymakers also reaffirmed that the move to shorten the settlement cycle from T+3 to T+2 is receiving a lot of momentum from the industry and is expected to come into force in September.
The final draft of the rule is currently being formulated with industry comment and is expected in March.
For beneficial owners, the key change is that the recall window for on-loan securities will become a day shorter.
The question of whether the review of Rule 15c3-3, which may be amended to allow equities to be accepted as collateral in the US, is likely to move forward this year was posed to the panel. The response was that it is very unclear, although talks are ongoing.
“I don’t think we will see repeal of regulations,” said a legal expert panellist.
The panellist added the caveat that frameworks such as the new stay protocols are largely based on authority handed down from the US Dodd-Frank Act, meaning any amendments that may come will have significant knock-on effects.
An established market authority on the panel added: “The Dodd-Frank Act isn’t going away anytime soon, despite what you read in the paper.”
A panellist with connections to policymakers also reaffirmed that the move to shorten the settlement cycle from T+3 to T+2 is receiving a lot of momentum from the industry and is expected to come into force in September.
The final draft of the rule is currently being formulated with industry comment and is expected in March.
For beneficial owners, the key change is that the recall window for on-loan securities will become a day shorter.
The question of whether the review of Rule 15c3-3, which may be amended to allow equities to be accepted as collateral in the US, is likely to move forward this year was posed to the panel. The response was that it is very unclear, although talks are ongoing.
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