Highlights Recently Published Regulatory Notices
01–31 of July 2017
From the Consolidated Audit Trail:
- Issues updated Technical Specification for Participants.
- Updates its discussion of how to incorporate into the CAT equity securities other than NMS and OTC Equity securities.
From the Chicago Board Options Exchange:
- Announces the implementation of the final phase of its velocity-risk controls in which TPH logins will be restricted from entering new orders or quotes when 100% of a threshold for certain order velocity checks are reached.
- Proposes to extend the trading day for ETFs and ETNs until 3:15 pm CT each business day.
- Will require a “Reason Code” on its CTM Terminal when a trade record is added or deleted, or if certain fields are changed effective July 24, 2017.
From the Consumer Financial Protection Board:
- Advises financial institutions of the publication of its rulemaking agency by the Office of Management and Budget.
From the Commodity Futures Trading Commission:
- Announces the start of a comprehensive review of the swap data reporting regulations and seeks public comment until August 21, 2017.
From the Depository Trust Company:
- Announces on August 4, 2017, it will increase ‘memo seg’ balances when receives of DRS shares increase positions for participant leveraging its Option 1 Memo Segregation Profile.
- Files rule change to update and clarify its Operational Arrangements.
- Will enhance its Eligible Corporate Securities with Description file to update the create date in the DTF header effective February 16, 2018.
- Advises participants of the filing of the rule change to establish the effective date for the industry’s move to a shortened settlement cycle.
From Fixed Income Clearing Corporation:
- Files rule change to codify the Clearing Agency Risk Management framework
- Proposes changes to its fee structure in light of the launch of its Novation Program on July 31, 2017.
- Announces on July 31, 2017 it will novate the TBA CUSIP for FNMA 30 Year 4.5% issues.
- Issues Regulatory Notice relating to its new rules regarding disruptive quoting and trading activities.
- Announces October 2, 2017 as the effective date on which it will reduce the delay period applicable to Historic TRACE Data for corporate bonds and agency debt, including Rule 144A transaction in such securities from 18 to 6 months.
- Will require beginning February 5, 2018 to report the “B” and “S” modifiers on applicable transaction in Treasury securities when reporting the transactions to TRACE.
- Publishes FAQs related to the pricing confirmation disclosure requirements effective May 14, 2018.
- Issues updated FAQs related to Trade Reporting obligations.
- Publishes its monthly report of disciplinary actions.
- Re-publishes the February 2017 C.II. statistics published earlier to reflected updated statistics for trade date February 27, 2017.
- Releases details of the actions and discussions that took place during its July 2017 Board of Governors meeting.
- Updates its list of ATS firms for TRACE reporting.
- Fines and censures four broker-dealers for failures related to Market Access and supervision of such access.
From the Internal Revenue Service:
- Publishes FAQs on FFI Agreement renewals.
- Updates list of approved certificate authorities effective July 31, 2017.
From Municipal Securities Rulemaking Board:
- Publishes its monthly update.
- Issues guidance related to the upcoming requirement to disclose pricing information on customer confirmations on fixed income transactions.
- Issues a Regulatory Notice that discusses a municipal advisor’s relationship(s) with, duties and obligations owed to, a municipal entity issuer, an obligated person that is a conduit borrower, or both, in these scenarios.
- Citing a need to defray the costs and expenses of the operation of the MSRB, it files a proposal to assess a fee on underwriters.
- Publishes details of its discussion held during its quarterly meeting held July 26-27, 2017.
- Releases municipal market statistics for 2Q 2017.
- Receives SEC approval of amendments to its Rule G-26 to modernize and standardize its customer account transfer rule effective January 29, 2018.
From National Association of Securities Administration Association:
- Seeks public comment on proposed model rule amendment to the NASAA model rule on Unethical Business Practices of Investment Advisers and Investment Adviser Representatives and Federal Covered Advisers to address investment advisers accessing client accounts with the client’s own unique identifying information.
- Proposes assessing high fees to those members that will require more Exchange regulatory services based on the amount of customer options business they conduct.
- Files rule change to adopt procedures that will lead to a more objective and uniform way to determine Theoretical Price in the event a reliable NBBO is not available.
- Nasdaq will continue to offer routing strategies for routing orders to NYSE American.
- Announces an updated UTP Plan Vendor Agreement.
- Proposes to create a new order type – Midpoint Extended Life Order.
- Issues reminder and details of its Reg SCI BC/DR test to be held on October 14, 2017.
- Publishes notice of details related to the implementation on September 5, 2017 of the shortened settlement cycle.
From National Securities Clearing Corporation:
- Files rule change to codify the Clearing Agency Risk Management framework.
- Announces several enhancements to its AIP Services effective October 26, 2017.
From New York Stock Exchange & NYSE MKT:
- Citing lack of use, proposes to eliminate non-regular way settlement.
- Adopts new rule, effective June 19, 2017 that allows them to institute expedited client suspension proceedings to address prohibited disruptive quoting and trading activities.
- Issues Educational Bulletin to remind members of the rule changes that will accompany the transition of NSE MKT to NYSE American effective July 24, 2017.
From Options Clearing Corporation:
- Announces plans to support negative prices of Futures tentatively in 3Q 2017.
- Will enhance screens and reports to accommodate five decimal places in the trade and settlement price for all futures products effective July 15, 2017.
- Issues details related to the BC/DR industry wide test scheduled for October 14, 2017.
- Makes available a new CMO core report to provide information on updates to the Stock Loan MSLA screen available on July 17, 2017.
- Announces the effective date of August 5, 2017 and time of 12:01 AM of its updated Accord with NSCC and related details as to the settlement impacts.
From the U.S. Treasury:
- OFAC issues new and updated FAQs regarding Cuba as a follow up to the President’s announcement on June 16, 2017.
From UST2 Committee:
- Posts the slides from its industry webinar.
- Publishes notice from NYSE et al of changes related to the implementation of the shortened settlement cycle.
- Publishes an announcement from the FDIC highlighting actions that banks should take to prepare for the change to the securities settlement cycle for transactions effective September 5, 2017.