The deadline for the SEC 18f-4 Derivatives Rule is right around the corner. Are you prepared?
The SEC 18f-4 Derivatives Rule mandates all SEC-registered companies – from 40 act funds (mutual funds) to exchange-traded (leveraged and inverse) and business development companies (BDC) – implement a derivatives framework by August 19, 2022. If you haven’t already selected your risk management provider, then take a look at our videos before you do.
We have been helping a number of clients to comply not only with this near-term mandatory requirement, but also to establish a framework to seamlessly handle future regulatory needs. We’d like to share some of the top challenges you may come up against and the best practices you should follow before deciding on your risk management vendor.
Top analytical challenges risk managers face when implementing an SEC Derivatives Rule 18f-4 (Full Video)
SEC 18f-4 Rule: Outline of requirements
Top 3 challenges of implementing 18f-4 Rule framework
Regulatory reporting solutions for future filings
INFOGRAPHIC: The SEC Derivatives Rule – The Road to Compliance
The SEC has adopted the 18-f Rule which will affect specific investment companies using derivatives. Reporting on stress tests, VaR measurements and backtests, are just some of the mandatory requirements – all of which can be accessed through the cloud-native Axioma RiskTM risk management platform.
Risk Webinar: New SEC Derivatives Rule ‘Is Sea Change and Opportunity’
Rule 18f-4 is likely the most significant change ever to the way the SEC regulates funds’ use of derivatives, and will have a large impact on how registered companies will need to manage their derivatives risk. We hosted a Risk.net webinar with Dechert LLP and Wellington Management to discuss what this important legislation entails, how firms are preparing for it and what risk measurements are required. The main message? Companies need to focus on this now to make the Aug. 19, 2022 deadline.
Managing Derivative Securities? Top 5 Questions to Ask Your Risk Management Provider Ahead of the New Derivatives Rule
The countdown has begun. The Securities and Exchange Commission (SEC) adopted the 18f-4 Derivatives Rule in October last year, which means most SEC-registered companies will now have to make sure they don’t fall foul of the rule by August 19, 2022. While it seems a long time away, it’ll be here before you know it. To that end, we’ve put together a few questions you should ask your existing – or potential – risk solutions provider.
How to design a meaningful stress test when VaR isn’t enough
As a result of the derivatives rule SEC 18f-4 passed on October 28, 2020, all SEC-registered mutual funds, ETFs and Business Development Companies (BDCs) with derivative notional exceeding certain threshold are required to appoint a derivatives risk manager in charge of implementing a regulatory framework for its fund’s derivatives use. The necessary risk guidelines focus on reporting limits of fund leverage risk based on Value-at-Risk (VaR).