A formal repeal has been introduced against the US Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121, which has made it too costly for traditional custodians to hold crypto assets in custody.
Market participants have until 29 April to provide comments; ESMA will publish its final report in Q4 2024.
Our predictions series continues as Societe Generale Securities Services, Proxymity, Marex and Firebrand Research give their views on regulatory and macro factors set to impact the industry in 2024.
Progressive penalties would increase with the length of the settlement fail as EU watchdog seeks industry input.
Arbitrary and capricious rules will hurt investors and markets, say industry bodies.
During the House Financial Services Subcommittee last week, Chairman French Hill challenged the OCC and Federal Reserve on their thoughts regarding the SEC’s controversial custody rule.
Rule 10c-1a has been adopted by the SEC with the aim of increasing transparency in the securities lending market. It requires lenders of securities to report the material terms of securities lending transactions to a registered national securities association (RNSA). Global Custodian spoke to Madhu Subbu, head of securities finance technology at Clear Street, to understand the implications of the new rule for the securities lending market.
Reporting will be required by the end of the day as opposed to the initially proposed 15-minute window after the transaction.
Ben Pott, head of public policy, EMEA at BNY Mellon, discusses regulatory divergence between the EU and UK with Global Custodian’s deputy editor Chris Lemmon.
Report finds that almost all market participants said a common definition would be helpful in increasing efficiency throughout the custody chain.