Fed’s Rosengren urges tightening of broker-dealer regulation

FXStreet (Łódź) - Boston Fed chief President Eric Rosengren said on Wednesday that regulation concerning the supervision of broker-dealer operations should be made tougher by raising capital requirements for firms which conduct a considerable amount of such operations.

He also proposed restricting the possibility of using short-term repurchase agreements to pay for assets which carry higher risk or for long-term ones.

Should these actions be carried out it could "impact on the profitability of broker-dealers," he admitted adding however that "given recent history, that trade-off may be unavoidable and in the public interest from a financial stability perspective."