Most Clicked SIFMA SmartBrief Stories


1. Lack of market liquidity is a top concern

SIFMA SmartBrief | May 21, 2015

Bank executives, hedge fund managers and investors are raising concerns about a lack of market liquidity. Executing big trades in the government-debt and foreign exchange markets has become increasingly difficult without affecting prices partly because banks are reluctant to make markets. SIFMA will hold a discussion on fixed-income liquidity on June 11 in NYC. Registration is now open. The Wall Street Journal (tiered subscription model) (05/20)


2. New mortgage-backed security in the works

SIFMA SmartBrief | May 18, 2015

Fannie Mae and Freddie Mac are working to create a new type of mortgage-backed security that would replace what each currently issues. Officials say the product, known as a single security, could reduce costs for borrowers. "While there are potential benefits from the proposal outlined in [the Federal Housing Finance Agency's request for information], there are also significant risks if the proposal were not implemented with appropriate caution, planning, and most important, broad understanding and support from a range of market participants," SIFMA wrote in a comment letter last year. SIFMA will review the latest proposal, said Executive Vice President Randy Snook. The Wall Street Journal (tiered subscription model) (05/15)


3. SEC votes to collect more info from asset managers

SIFMA SmartBrief | May 21, 2015

The Securities and Exchange Commission has voted unanimously on a proposal to increase data collected from the asset-management industry to improve risk assessment. The proposal calls for mutual fund firms to provide information, such as use of complex and possibly risky derivatives. The SEC also voted unanimously to propose a rule requiring bond funds to disclose how portfolios would be affected by changes in interest rates. Reuters (05/20) The Wall Street Journal (tiered subscription model) (05/20) Bloomberg (05/20)


4. 401(k)s must be monitored by employers, high court says

SIFMA SmartBrief | May 19, 2015

The U.S. Supreme Court has ruled that employers providing 401(k) plans have an ongoing duty to review investments offered. A plan's trustee must "monitor, and remove imprudent, trust investments," according to the ruling. A six-year statute of limitations on breach of fiduciary duty doesn't bar lawsuits against those who fail to carry out this responsibility, the court says. The Washington Post (tiered subscription model) (05/18) Los Angeles Times (tiered subscription model) (05/18) InvestmentNews (free registration) (05/18) Pensions & Investments (free access for SmartBrief readers) (05/18)


5. Revenue expected to fall in Q2 at major investment banks

SIFMA SmartBrief | May 20, 2015

Weaker revenue from bonds, commodities and currencies at global investment banks, accounting for seasonal differences, will cut the top line in the second quarter, according to an analysis by JPMorgan Chase. "We are witnessing a slowdown in investment banking revenues in the second quarter of 2015, potentially more than normal seasonality, driven by weakness in rates following a strong first-quarter 2015 performance," according to analysts. Bloomberg (05/19)


6. Young candidates for regulatory jobs hard to find, FINRA exec says

SIFMA SmartBrief | May 21, 2015

The Financial Industry Regulatory Authority is having difficulty finding young candidates for regulatory jobs, said Susan Axelrod, executive vice president of regulatory operations at FINRA. Speaking at SIFMA's NextGen seminar Wednesday, Axelrod said regulatory jobs call for knowledge of changing and complicated products and sometimes require road trips of up to six weeks. WealthManagement.com (U.S.) (05/20)


7. Fed might let banks use some munis to meet new rules

SIFMA SmartBrief | May 22, 2015

The Federal Reserve has proposed letting large banks use some municipal bonds to comply with liquidity requirements. However, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency have not signed on, so it's unclear how many large banks would be able to capitalize on the change. The Bond Buyer (free content) (05/21) The Wall Street Journal (tiered subscription model) (05/21) Reuters (05/21) Bloomberg (05/21)


8. More compliance execs face securities-misconduct charges

SIFMA SmartBrief | May 21, 2015

More than a dozen chief compliance officers for investment advisers and broker-dealers were charged with violating securities rules in the second half of 2014, according to a study by Sutherland Asbill & Brennan. The data suggest U.S. regulators are focusing enforcement on internal watchdogs. MLex (subscription required) (05/19)


9. Bloomberg terminals get some competition

SIFMA SmartBrief | May 18, 2015

Fortune (05/10)


10. House discusses cybersecurity; Senate debates trade bill

SIFMA SmartBrief | May 19, 2015

Kenneth E. Bentsen Jr., SIFMA's president and CEO, is set to testify today before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit at a hearing about cybersecurity. Meanwhile, the Senate has begun debate on legislation that would give President Barack Obama authority to submit trade treaties for ratification without amendments. Learn more about the House's hearing. The Hill (05/18)




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