US lawmakers seek push out details. US Senators Elizabeth Warren and Elijah Cummings sent a letter to the country’s banking regulators asking for information concerning the effect of an amendment to the Dodd-Frank act which partially repealed the “swaps push-out rule,” which had required banks to “push-out” certain swaps trading activities to non-federally insured subsidiaries. (7/16/2015) Warren press release.
US regulators report on US Treasury trading volatility. The US Department of Treasury, Federal Reserve Board, Federal Reserve Bank of New York, Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) jointly reported on the significant volatility which occurred in the market for US Treasuries on October 15, 2014. A number of developments most likely contributed to the volatility, including changes in global risk sentiment, a decline in order book depth and changes in order flow and liquidity provision. (7/13/2015) Joint press release. Separately, SEC Commissioner Luis A. Aguilar called for a full examination of the regulatory framework for US Treasuries. The examination should consider the development of a mechanism similar to the consolidated audit trail that equity market participants are creating that will give regulators the ability to properly monitor the Treasury market; the development of market safeguards such as circuit breakers; and measures to improve price transparency. (7/14/2015) Aguilar statement.
Results of CSA continuous disclosure review. The Canadian Securities Administrators (CSA) published “Staff Notice 51-344 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2015,” which summarizes the results of the CSA’s continuous disclosure review program. The Staff Notice includes detailed examples of common deficiencies the CSA identified during its review of financial statements, management’s discussion and analysis and other regulatory disclosure. It also provides reporting issuers with practical guidance and suggestions for improving their disclosure. (7/16/2015) CSA press release.
OSC Corporate Finance Branch annual report. The Ontario Securities Commission (OSC) published “OSC Staff Notice 51-725 Corporate Finance Branch 2014-2015 Annual Report,” which provides key information to the individuals and entities the OSC regulates, as well as their advisers, to help them comply with regulatory obligations. It contains observations and guidance from compliance work conducted by the Corporate Finance Branch in fiscal 2015 in several areas, including continuous disclosure and prospectus reviews. (7/14/2015) OSC press release.