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Jan 14, 2022

What to Expect When Gearing Up for 18f-4

The impending SEC Rule 18f-4 that comes into effect August 2022, will change the regulatory framework for financial institutions that engage in derivatives transactions. US-based registered investment companies, including mutual funds, ETFs, closed-end funds and others are gearing up for the reporting requirements that involve complex calculations and modeling techniques.

Jan 14, 2022

SEC Rule 18f-4: Backtesting 101

The SEC Rule 18f-4 comes into effect August 2022, changing the regulatory framework for derivatives use by registered investment companies, including mutual funds, ETFs, and closed-end funds. One of the many requirements of the Rule is to conduct backtesting on those funds that require a VaR-based leverage limit.

Aug 12, 2021

Navigating the complexities of 18f-4 compliance

Last year as capital markets shifted across the globe, it became clear that stronger risk management is needed to protect investors. With equity markets seeing deep downside and extreme volatility, the use of derivatives would either become a safe haven for the hedges they provided, or a curse for those who were using them for leverage and got caught on the wrong side. 

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