Vendors Accused of Over-Promising on Liquidity Rule

Two buy-side risk officers believe that the SEC put too much faith in the vendor community when making its liquidity rules, specifically for fixed income.

liquidity

On October 13, 2016, the US Securities and Exchange Commission (SEC) released its final rule to “promote effective liquidity risk management throughout the open-end fund industry, thereby reducing the risk that funds will be unable to meet redemption obligations and mitigating dilution of the interests of fund shareholders.” It set a go-live date for December 1, 2018.

These liquidity rules, as they have come to be known, require that fund managers classify holdings in four buckets that are

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DORA stalls over identifier dispute

A disagreement over how to classify third-party tech providers on a reporting form known as the “register of information” has held up preparations for the highly anticipated operational resiliency rule in Europe.

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