Stock Market News

Wall Street watchdog to scrutinize risky derivative products

2022.05.11 16:26

Wall Street watchdog to scrutinize risky derivative products
The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly

WASHINGTON (Reuters) – The chair of the U.S. Securities and Exchange Commission warned on Wednesday that the agency may bring more enforcement actions in cases involving risky derivatives, saying such products can create “systemwide risks” during times of market stress.

Last month, the agency brought charges against Bill Hwang, the owner of private fund Archegos, and other executives, alleging they engaged in fraud and market manipulation to create huge exposures to a handful of stocks using sophisticated equity swaps.

“Market participants’ use of derivatives touch so many parts of our markets, from SEC registered funds wrapping these products in publicly offered strategies, to numerous private funds using derivatives at significant exposure levels,” SEC Chair Gary Gensler told an industry audience on Wednesday, citing recent enforcement actions against risky use of these products.

“There may be more (enforcement actions) to come.”

Separately, Gensler also warned that swaps based on cryptocurrencies would generally be considered reportable security-based swaps under its rules.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,182.31 4.07%
ethereum
Ethereum (ETH) $ 3,486.94 2.26%
tether
Tether (USDT) $ 0.99943 0.05%
xrp
XRP (XRP) $ 2.30 1.66%
bnb
BNB (BNB) $ 703.07 1.55%
solana
Solana (SOL) $ 198.90 4.12%
dogecoin
Dogecoin (DOGE) $ 0.333856 3.37%
usd-coin
USDC (USDC) $ 1.00 0.02%
staked-ether
Lido Staked Ether (STETH) $ 3,482.70 2.19%
cardano
Cardano (ADA) $ 0.925348 1.28%
tron
TRON (TRX) $ 0.256517 1.66%
avalanche-2
Avalanche (AVAX) $ 41.20 5.98%
chainlink
Chainlink (LINK) $ 24.87 2.78%
the-open-network
Toncoin (TON) $ 5.86 4.32%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,136.88 2.43%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 3.43%
sui
Sui (SUI) $ 4.61 1.10%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,791.20 3.83%
hedera-hashgraph
Hedera (HBAR) $ 0.311629 4.35%
stellar
Stellar (XLM) $ 0.390006 4.31%
polkadot
Polkadot (DOT) $ 7.45 1.77%
hyperliquid
Hyperliquid (HYPE) $ 29.89 0.55%
weth
WETH (WETH) $ 3,486.43 2.25%
bitcoin-cash
Bitcoin Cash (BCH) $ 464.97 0.92%
leo-token
LEO Token (LEO) $ 9.49 0.87%
uniswap
Uniswap (UNI) $ 14.22 1.22%
litecoin
Litecoin (LTC) $ 108.41 1.62%
pepe
Pepe (PEPE) $ 0.000019 3.57%
bitget-token
Bitget Token (BGB) $ 5.12 15.89%
near
NEAR Protocol (NEAR) $ 5.55 2.26%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,678.94 2.14%
ethena-usde
Ethena USDe (USDE) $ 0.999309 0.04%
aave
Aave (AAVE) $ 375.77 1.04%
aptos
Aptos (APT) $ 9.77 2.44%
internet-computer
Internet Computer (ICP) $ 11.35 5.40%
usds
USDS (USDS) $ 1.00 0.00%
crypto-com-chain
Cronos (CRO) $ 0.161498 0.49%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.519556 3.11%
vechain
VeChain (VET) $ 0.052237 8.09%
ethereum-classic
Ethereum Classic (ETC) $ 27.61 1.12%
mantle
Mantle (MNT) $ 1.23 1.67%
render-token
Render (RENDER) $ 7.77 0.14%
bittensor
Bittensor (TAO) $ 501.89 1.86%
mantra-dao
MANTRA (OM) $ 3.81 0.15%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.38 1.32%
monero
Monero (XMR) $ 195.24 3.72%
whitebit
WhiteBIT Coin (WBT) $ 24.83 1.54%
dai
Dai (DAI) $ 1.00 0.15%
arbitrum
Arbitrum (ARB) $ 0.807592 0.92%
filecoin
Filecoin (FIL) $ 5.40 4.03%