- The U.S. Securities and Exchange Commission yesterday warned broker-dealers and other market participants to “remain vigilant to market and counterparty risk” amid heightened volatility and global uncertainties, reported Reuters.
- “Staff urges broker-dealers to seek sufficient information to determine counterparties’ aggregate positions in any markets that may experience liquidity concerns and work with the counterparties to mitigate risk,” the SEC stated.
- The commission prompted broker-dealers to closely monitor counterparty risk, collect “margin” or collateral from counterparties to “the fullest extent possible,” and stress test their positions.
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