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Morning Consult: SEC Rule to Limit Derivatives Alarms Industry With Liquidity Concerns

A Securities and Exchange Commission proposal to place caps on registered investment firms’ exposures to derivatives is showing the hallmarks of a classic Washington battle — the industry is trying to tamp down advocacy groups’ requests for broad regulations.

Although the SEC hasn’t announced its plans, lobbyists who have been watching the derivatives rule expect the agency to move forward in the coming months.

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Watchdog groups like Better Markets and Americans for Financial Reform have championed the proposal, but it has come under fire from the financial industry, which says it could harm the manner in which funds safely manage assets. The proposal has been the subject of public discussions since formal stakeholder comments came out in March, and it has continued to be scrutinized by lawmakers such as Sen. Sherrod Brown (D-Ohio), who weighed in on the debate last month.

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To read the full Morning Consult article by Ryan Rainey click here.

 

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