Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Change to the No-Action Relief Regarding Definition of “Ready Market” With Regard to Foreign Equity Securities Pursuant to SEC Rule 15c3-1(c)(11)(i)

Posted in Broker-Dealer

On February 9, the Securities and Exchange Commission withdrew a no-action letter that was issued on November 28, 2012 (Old Letter), and issued a new one in its place (New Letter). The New Letter is identical to the Old Letter except that it: (1) expands the equity securities of a foreign issuer that may be treated as having a “ready market” from ones that are listed on the FTSE World Index to securities listed for trading on a foreign securities exchange located within a country that is recognized on the FTSE World Index if they have been trading for at least 90 days; and (2) it alters footnote 5. Continue Reading

FINRA Regulatory Notice Regarding Private Placements and Public Offerings Subject to a Contingency

Posted in Broker-Dealer

The Financial Industry Regulatory Authority’s review of various securities offering documents revealed instances in which broker-dealers have not complied with Securities Exchange Act Rules 10b-9 and 15c2-4 requirements (Requirements). FINRA released Regulatory Notice 16-08 to remind broker-dealers of their responsibility to have procedures reasonably designed to achieve compliance with the Requirements and to provide guidance regarding the Requirements. Continue Reading

European Commission and CFTC Announce Harmonized Approach to CCPs

Posted in CFTC, Derivatives, EU Developments

On February 10, the Commodity Futures Trading Commission and the European Commission (EC) announced that they had reached an agreement on a harmonized approach to central clearing counterparties (CCPs). The agreement ensures that EU market participants will be able to continue to use CFTC-registered CCPs without incurring substantial capital changes. Continue Reading

CFTC’s Energy and Environmental Markets Advisory Committee To Hold Public Meeting

Posted in CFTC, Derivatives, Dodd-Frank Developments

The Commodity Futures Trading Commission’s Energy and Environmental Markets Advisory Committee (EEMAC) will hold a public meeting on February 25. Continue Reading

FCA Publishes Policy Statement on the Implementation of UCITS V

Posted in UK Developments

On February 2, the Financial Conduct Authority (FCA) published a policy statement on the implementation of the Undertakings for the Collective Investment of Transferable Securities V Directive (UCITS V). Policy Statement 16/2 sets out FCA Handbook changes required to implement UCITS V and also the FCA’s feedback on responses received to Part I of the FCA’s Consultation Paper 15/27, released in September 2015. Continue Reading

European Commission Announces Action Plan Against Terrorism Financing and Changes to the Fourth AML Directive

Posted in EU Developments

On February 2, the European Commission (EC) announced and presented an action plan (Action Plan) against terrorism financing, which includes amendments to the fourth Anti-Money Laundering (AML) Directive that went into effect in June 2015. Continue Reading

European Commission Proposes One-Year Extension for MiFID II

Posted in EU Developments

On February 10, the European Commission (EC) announced its legislative proposal (Proposal) that would provide for a one-year extension to the application of the amended Markets in Financial Instruments Directive and the Markets in Financial Instruments Regulation (together, MiFID II). If the Proposal is approved by the European Parliament and the Council, the application date will be pushed back from January 3, 2017 to January 3, 2018. Continue Reading

CFTC Approves Derivative Clearing Organization Registration Order for Eurex Clearing AG

Posted in CFTC, Derivatives

On February 1, the Commodity Futures Trading Commission issued an order granting Eurex Clearing AG registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act (CEA). The order will allow Eurex Clearing to provide clearing services, in its capacity as a registered DCO, for swaps for (1) US persons clearing for their own proprietary business, or (2) futures commission merchants clearing on behalf of US customers. Before the order becomes effective, however, Eurex Clearing must comply with the CFTC’s “straight-through processing” requirements. Continue Reading

NFA Issues Notice Regarding Swap Valuation Dispute Notices

Posted in CFTC, Derivatives

On February 2, National Futures Association (NFA) issued Notice I-16-07, which implements an order previously issued by the Commodity Futures Trading Commission authorizing NFA to receive notices of swap valuation disputes exceeding $20 million required to be filed with the CFTC by swap dealers (SDs) and major swap participants (MSPs) pursuant to CFTC Regulation 23.502(c). Effective March 1, NFA will receive and maintain such notices and then provide summaries and reports regarding such disputes to the CFTC. As of that date, SDs and MSPs will be required to file notices of swap valuation disputes through WinJammer™, NFA’s online filing application. NFA noted that beginning in Fall 2016, firms must provide standardized information when filing such valuation disputes. Going forward, NFA will provide additional information to allow SDs and MSPs to modify their processes to comply with these new standards.

NFA Notice I-16-07 is available here.