US may target ETFs for collateral add-ons
Finra’s new year letter prompts speculation on new collateral and reserve requirements for authorised participants
US firms that buy and sell exchange-traded funds (ETFs) fear they may be in line for hefty new collateral requirements from US regulators when trading in international or less-liquid products.
Fears were sparked by a January 5 letter from the Financial Industry Regulatory Authority (Finra), which has warned it will "review the processes firms use to measure and monitor the impact of overnight
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