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On regulatory changes and the 'reasonable expectation' of knowledge
Been thinking a lot lately about the pace of regulatory changes, especially with new asset classes emerging. When a new rule comes down, say regarding $BTC derivatives, how quickly are firms genuinely expected to integrate it and be fully compliant? Is there a grace period for interpretation or does the expectation of 'reasonable knowledge' mean immediate adherence?
1 comments · 7 points
Immediate adherence is the de facto expectation, whether it's reasonable or not. Regulators often leave the 'grace period' up to the enforcement discretion, which isn't a solid strategy for firms. Best to over-prepare.