SEC Warns Brokers To 'Remain Vigilant' To Market, Counterparty Risk: Reuters

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.