Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

SEC Modifies and Extends Pilot Program for NMS Plan to Address Extraordinary Market Volatility

Posted in Broker-Dealer

The Securities and Exchange Commission has issued an order that modifies and extends the National Market System (NMS) Plan to Address Extraordinary Market Volatility. Specifically, the SEC has approved the modification of the definition of “opening price” in instances in which the primary listing exchange opens with quotations. In these instances, the opening price will be the closing price of the NMS stock on the primary listing exchange on the previous trading day, or if no such closing price exists, the last sale on the primary listing exchange reported by the securities information processor. Continue Reading

SEC Seeks Public Comment on Consolidated Audit Trail Proposal

Posted in Broker-Dealer

The Securities and Exchange Commission plans to publish for public comment a National Market System (NMS) plan to create a consolidated audit trail (CAT) to better enable regulators to track trading in equity and option securities. The CAT plan was submitted jointly by the national securities exchanges and the Financial Industry Regulatory Authority to the SEC. Continue Reading

FINRA Permits ATSs to Apply for Exemptions From TRACE Reporting

Posted in Broker-Dealer

The Financial Industry Regulatory Authority has adopted new Rule 6732, which allows an alternative trading system (ATS) to apply for an exemption from the Trade Reporting and Compliance Engine (TRACE) trade reporting obligations under Rule 6730. Continue Reading

FINRA to Publish ATS Block-Size Trade Data

Posted in Broker-Dealer

On October 3, the Financial Industry Regulatory Authority will begin publishing monthly statistics on block-size trades occurring on alternative trading systems (ATSs). The statistics regarding ATS block-size trades will be aggregated across all National Market System (NMS) stocks (i.e., there will be no security-by-security block data), will be for a time period of one month of trading, and will be published no earlier than one month following the end of the month for which trading was aggregated. Continue Reading

FCA Trade Association Roundtable on MiFID II Implementation

Posted in UK Developments

On March 17, the Financial Conduct Authority (FCA) held a roundtable (Roundtable) with trade associations to discuss the application and implementation of the revised and recast Markets in Financial Instruments Directive and the associated Markets in Financial Instruments Regulation (jointly referred to as MiFID II). Continue Reading

Speech by Commissioner Jonathan Hill Highlights Need for Proportionate Rulemaking

Posted in EU Developments

On April 21, the European Commission (EC) published a keynote speech delivered by Commissioner Jonathan Hill in which he reported on progress towards the EU’s proposed Capital Markets Union (CMU) and responses received as part of the EC’s call for evidence (Call for Evidence) on the European Union’s (EU) regulatory framework for financial services. Continue Reading

ECON Adopts Draft Report on Virtual Currencies

Posted in EU Developments

On April 26, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) confirmed it voted in favor of a proposal contained in a draft report (Report) to create a virtual currencies taskforce. The taskforce would be created to (1) build expertise in the technology of virtual currencies (such as Bitcoin), and (2) where appropriate, propose regulatory measures necessary to regulate those currencies, particularly in the context of preventing money laundering and terrorist financing. Continue Reading

European Commission Adopts Second MiFID II Delegated Act

Posted in EU Developments

On April 25, the European Commission (EC) adopted its second delegated act to supplement the amended and restated Markets in Financial Instruments Directive (MiFID II). The delegated act is in the form of a regulation (Delegated Regulation) and sets out organizational requirements and operating conditions for investment firms under MiFID II. Continue Reading

SEC Releases Registration Fee Estimator

Posted in SEC/Corporate

On April 18, the Securities and Exchange Commission announced the release of an online tool that will assist companies in calculating registration fees relating to certain forms to be filed on EDGAR, the SEC’s electronic filing database. The registration fee estimator is intended to help issuers more accurately estimate registration filing fees and complete related fee tables. In its press release, however, the SEC cautions issuers that the tool will not serve as an official SEC verification of fees and reminds issuers that they remain responsible for paying all required fees. Continue Reading