SEC Said to Examine Fund Disclosure Rules

The collapse of Archegos Capital has led regulators to scrutinize how firms disclose derivative holdings. The SEC is considering increasing transparency for derivative bets, as Archegos used swaps to build large, undisclosed positions, leading to significant bank losses. Public documents like forms 13F and 13D, which reveal major stock holdings, are under review. Credit Suisse, heavily impacted by the collapse, is undergoing a major executive shakeup in its risk management division.

What prompted regulators to scrutinize how firms reveal their derivative holdings?

• The implosion of Archegos

• The rise of cryptocurrency

• The housing market crash

• The collapse of Lehman Brothers

Which forms are typically used to reveal the big stock holdings of investment firms?

• Forms W-2 and 1099

• Forms 13F and 13D

• Form 8-K and S-1

• Form 10-K and 10-Q

What financial instrument did Archegos use instead of common stock?

• Swaps

• Futures

• Options

• Bonds

What was the estimated financial loss for Credit Suisse due to the Archegos collapse?

• $1 billion

• $10 billion

• $2.5 billion

• $4.7 billion

What unusual practice did Credit Suisse engage in following the Archegos collapse?

• Hiring new executives from outside the industry

• Investing heavily in cryptocurrency

• Switching revenue-generating employees to risk oversight roles

• Closing down their prime brokerage unit