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

March 15, 2022 7:31 AM | 28 seconds read | Make a Comment

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.

Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.