The Federal Reserve Bank of New York issued a preliminary staff paper, titled "Does Central Clearing Reduce Counterparty Risk in Realistic Financial Networks?" authored by Rodney Garratt and Peter Zimmerman. The paper examines the effect of introducing a central clearing counterparty ("CCP") on the expected net exposures of dealers, and also explores the effect of such introductions on the variance of these net exposures. The authors find that a CCP is unlikely to be beneficial when the link structure of the network relies on just a few key nodes. In large scale-free networks in particular, a

The SEC proposed rule amendments to Exchange Act Rule 15b9-1 to require broker-dealers trading in off-exchange venues to become members of a national securities association ( i.e., FINRA). According to the SEC, the amendments would enhance the regulatory oversight of active proprietary trading firms, such as high-frequency traders. Currently, Rule 15b9-1 exempts certain brokers-dealers from membership in FINRA if they (i) are members of a national securities exchange, (ii) carry no customer accounts, and (iii) each have annual gross incomes in which no more than $1,000 is derived from

The SEC adopted final rules to expand the scope of Regulation A in order to facilitate smaller companies' access to capital. The final rules, which are often referred to as "Regulation A+," are mandated by Title IV of the JOBS Act and update Regulation A's existing exemption to enable smaller companies to offer and sell up to $50 million in securities within a 12-month period, subject to eligibility, disclosure and reporting requirements. The final rules provide for two tiers of offerings: (i) Tier 1, for offerings of up to $20 million in securities within a 12-month period that do not include

The CFTC announced the full agenda for its upcoming Market Risk Advisory Committee ("MRAC") meeting. The meeting is scheduled to take place on April 2, 2015. The MRAC meeting will focus on issues related to the current risk management techniques employed by derivatives clearing organizations to ensure that appropriate measures are in place to address the potential default of a significant number of clearing members. Additionally, participants will discuss the evolving structure of the derivatives markets, particularly with respect to swap execution facilities. See: MRAC Meeting Agenda. Related

The Asset Management Group of SIFMA ("SIFMA AMG") and the Investment Adviser Association ("IAA") submitted a joint response to the request by the Financial Stability Oversight Council ("FSOC") for comments regarding the role played by asset managers in financial markets. MFA also submitted comments in a separate letter. According to SIFMA AMG and IAA, asset managers and the funds they manage do not present a systemic risk. The SIFMA AMG and IAA letter focused on the following three themes: The SEC and FSOC have "distinct but complementary roles," and the SEC is already assessing issues raised