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VAR: ready to explode?

The SEC plans to force US securities firms to tighten up their value-at-risk reporting. Its decision comes as VAR at the world’s leading financial services firms soared an average 25.8% last year. Who are the biggest risk-takers, and are risk managers worried? By Christopher Jeffery, with research by Steffen Schwarz

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Risk managers at Wall Street securities firms received a jolt in early June when the industry’s top regulator, the Securities and Exchange Commission (SEC), instigated plans to radically improve value-at-risk reporting procedures. The securities firms, many of which saw their VAR rise dramatically in 2003, are now working with leading Federal Reserve-regulated commercial banks to conform with a

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