US SEC Warns Brokers to ‘Remain Vigilant’ to Market, Counterparty Risk

US SEC Warns Brokers to ‘Remain Vigilant’ to Market, Counterparty Risk
Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York, on March 7, 2022. Andrew Kelly/Reuters
Reuters
Updated:

WASHINGTON—In a rare public warning, the U.S. Securities and Exchange Commission on Monday told broker-dealers and other market participants to “remain vigilant to market and counterparty risk” amid heightened volatility and global uncertainties.

The agency urged broker-dealers to closely monitor counterparty risk, collect “margin” or collateral from counterparties to “the fullest extent possible,” and stress test their positions.