The SDDco Client Update
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The Office of Investor Education and Advocacy (OIEA) at the SEC issued a bulletin to inform investors on the use of both “stop” and “stop limit” orders when buying and selling stocks. What’s a Stop Order? A stop order, aka a stop-loss order, is an order to buy or sell a stock once the price
In response to mounting cybersecurity attacks, on May 17, 2016, the European Union (EU) Council of Ministers formally adopted seminal rules regarding the cooperative protection of network and information systems across all 28 EU member states. The EU’s first-of-its-kind, international cybersecurity policy will establish a regulatory framework governing data security. This will include designating national
As of May 16, 2016, six U.S. federal agencies (including the SEC) invite public comment on a proposed rule that would prohibit incentive-based compensation arrangements deemed to encourage inappropriate risks at covered financial institutions (the “Rule”). The commenting deadline is July 22, 2016. The Proposed Rule Flawed incentive-based compensation packages in the financial industry was a
As of July 1, 2016, the testing center option for completing the Regulatory Element of Continuing Education (CE) will end. Participants must use the FINRA CE Online System, unless a disability under the Americans with Disabilities Act (ADA) prevents them from doing so. Backfill FINRA has offered a full menu of Regulatory Element Programs (S101,
The SEC and US Department of the Treasury are jointly exploring “efficient and effective means of collecting U.S. Treasury cash market transaction information.” To better enable their safeguarding of the U.S. Treasury market, the agencies are requesting that FINRA “consider a proposal to require its member brokers and dealers to report Treasury cash market transactions to
FINRA reminds firms of their obligations to report large options positions to the Large Options Positions Reporting (LOPR) system. FINRA Regulatory Notice 16-17 gives an overview of the options reporting requirements and consolidates all previously issued guidance. Backfill Under FINRA Rule 2360(b)(5) requires, a firm must report “any options position in an account in which
Once again, FINRA has delayed the implementation date of FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports), pushing back the comply-by date from April 22, 2016, to July 16, 2016. See Regulatory Notice 15-31. (The initial start date was February 22, 2016.) FINRA Rule 2242 The SEC approved the adoption of FINRA Rule
Effective July 28, 2016, new FINRA Rule 6732 will give FINRA staff the authority to grant a member alternative trading system (ATS) an exemption from the TRACE trade reporting obligations of Rule 6730 (Transaction Reporting) for transactions occurring on an ATS that meet specified conditions. ATS Defined An ATS is a trading system that provides
The U.S. Commodity Futures Trading Commission (CFTC) announced on April 20, 2016, the signing of a 2014 Memorandum of Understanding (MOU) with three Canadian regulatory authorities provinces. The goal of the MOU is to cooperatively exchange info regarding regulated entities that operate on a cross-border basis in both the U.S. and Canada. Counterparties CFTC Chairman
FINRA has announced the expansion of its alternative trading system (ATS) transparency initiative. Beginning on Monday, October 3, 2016 FINRA will publish monthly information on block-size trades occurring on ATSs. This information will be free for all viewers. Backfill In 2014, FINRA began its transparency initiative making volume and trade count information for equity securities
A new NFA Notice to Members provides further detail regarding NFA’s review process of CFTC Covered Swap Entities’ margin models subject to the September 1, 2016 approval date. This info is an adjunct to the March NFA Notice to Members which gave an overview of the CFTC’s final rules on the margin requirements for uncleared swaps
The SEC now offers an online tool to help companies calculate registration fees for certain form submissions to EDGAR, the electronic database of financial reports and other filings. This tool aims to boost calculation accuracy and reduce corrections. Registration Fee Estimator The Registration Fee Estimator accommodates common filings used by companies to register “initial public