More regulations will make it harder to counterfeit shares…
“The Securities Industry and Financial Markets Association (SIFMA) has announced the industry-wide adoption of the Automated Recall Messaging System (ARMS), effective in February 2007 (see attached SIFMA Important Information). DTC supports the goal of automating the stock loan recall process either through a vendor-developed ARMS platform or through a direct connection to DTC’S SMART/Track for Stock Loan Recalls.”
“In recent years, increased scrutiny of the securities lending business by regulators has focused on accurate record keeping (Agent Lending Disclosure) and timely buy-ins of fails (Regulation SHO). With this in mind, industry-wide implementation of ARMS to stay ahead of the regulatory review process is logical, timely, and achievable. Transmitting recalls via ARMS creates and electronic audit trail for agent banks and broker-dealers either at the user’s vendor or DTCC, which houses the message hub for all non-intra-vendor recall messages.”
