Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

FIA Calls for Transitional Period for Commodity Firms Under MiFID II

Posted in EU Developments, Financial Markets

As originally reported by (subscription required) on May 5, the Futures Industry Association (FIA) has asked HM Treasury to allow for a transitional period for commodity firms under the United Kingdom’s implementation of the revised Markets in Financial Instruments Directive (MiFID II). Continue Reading

Jay Clayton Sworn in as SEC Chairman

Posted in SEC/Corporate

On May 4, Jay Clayton was sworn into office as the new chairman of the Securities and Exchange Commission. As discussed in the January 6 edition of the Corporate & Financial Weekly Digest, Mr. Clayton was a partner at Sullivan & Cromwell and was nominated to serve as SEC chairman by President Donald Trump.

The SEC’s press release regarding Mr. Clayton’s swearing in is available here.

NYSE Issues Proposed Rule to Allow Listing Without an IPO

Posted in SEC/Corporate

On March 13, the New York Stock Exchange (NYSE) issued a proposed rule to amend the provisions related to the qualification of companies listing without a prior registration under the Securities Exchange Act of 1934 (Exchange Act). This proposed rule amends Footnote (E) of Section 102.01B of the NYSE Listed Company Manual (Footnote (E)) and would allow companies to be listed on the NYSE without an initial public offering or other registration statement under the Securities Act of 1933 (Securities Act). Continue Reading

SEC Grants No-Action Relief Regarding Created ETF Shares and Failure to Close Transactions

Posted in Broker-Dealer

In a letter dated April 26, the Division of Trading and Markets of the Securities and Exchange Commission granted no-action relief to Latour Trading LLC (Latour Trading) in connection with its proposed use of newly created exchange traded fund (ETF) shares to comply with the requirements set forth in Rule 204 (Close-Out Requirement) of Regulation SHO (Rule 204). This rule requires a participant of a registered clearing agency to: (1) deliver securities to a registered clearing agency for clearance and settlement on a long- or short–sale transaction in any equity security by an applicable settlement date; or (2) close out a fail-to-deliver position at a registered clearing agency in any equity security for a long- or short-sale transaction in that equity security by borrowing or purchasing securities of like kind and quantity, by the beginning of regular trading hours on the applicable close-out date. Continue Reading

SEC and FINRA Announce 2017 National Compliance Outreach Program for Broker-Dealers

Posted in Broker-Dealer

On May 3, the Securities and Exchange Commission and Financial Industry Regulatory Authority opened registration for the 2017 National Compliance Outreach Program for Broker-Dealers, which will be held in Washington, DC on July 27. Topics to be discussed will include cybersecurity and investing by seniors.

Registration information is available here.


FINRA Amends Rule Regarding the Online Publication of Data Related to the Regulation NMS Plan to Implement a Tick Size Pilot Program

Posted in Broker-Dealer

On April 28, the Financial Industry Regulatory Authority filed with the Securities and Exchange Commission an amendment to Rule 6191 (Compliance with Regulation NMS Plan to Implement a Tick Size Pilot Program), which modifies the publication date for Appendix B website data related to the Regulation NMS Plan to Implement a Tick Size Pilot Program (the Plan). (For a more complete discussion of the Plan, see the May 8, 2015 edition of Corporate and Financial Weekly Digest). Prior to the rule filing, Rule 6191.12 required FINRA to make publicly available on its website certain data regarding the Plan’s Pre-Pilot and Pilot Period beginning on April 28. The rule filing allows Appendix B data for a given month to be published within 120 calendar days following month end. The delayed publication date is intended to provide FINRA with additional time to consider a methodology to mitigate concerns raised in connection with the publication of Appendix B data. FINRA requested that the rule change become effective upon filing.

A copy of the rule is available here.

CFTC Issues Guidance on the Calculation of Projected Operating Costs by DCMs and SEFs

Posted in CFTC

On April 28, the Commodity Futures Trading Commission issued guidance on the calculation by designated contract markets (DCMs) and swap execution facilities (SEFs) of projected operating costs for purposes of complying with DCM Core Principle 21 and CFTC Regulation 38.1101(c), and SEF Core Principle 13 and CFTC Regulation 37.1303. Continue Reading

CFTC Proposes Amendments to Certain Rules Governing CCO Duties and Annual Reports

Posted in CFTC

On May 3, the Commodity Futures Trading Commission announced proposed rules amending its regulations regarding certain duties of chief compliance officers (CCOs) of swap dealers (SDs), major swap participants (MSPs) and futures commission merchants (FCMs; each, a Registrant). In addition, the proposed rules amend certain requirements for preparing and furnishing CCO annual reports on a Registrant’s compliance activities to the CFTC. Many of the changes seek to harmonize such regulations with the Securities and Exchange Commission’s parallel rules. Continue Reading

CFTC Requests Public Input on Simplifying Rules

Posted in CFTC

On May 3, the Commodity Futures Trading Commission voted to seek comment from interested parties on applying CFTC’s regulations in simpler and less burdensome ways. The request for comment relates to the CFTC’s Project KISS, which stands for “Keep It Simple, Stupid.” In announcing the project, CFTC Acting Chairman J. Christopher Giancarlo noted that the initiative would not necessarily focus on repealing or rewriting existing regulations, but rather on the implementation of existing regulations. Members of the public can submit their ideas and suggestions by emailing or visiting

The CFTC press release is available here.


FCA Publishes MiFID II Commodity Position Reporting Instructions

Posted in Financial Markets, UK Developments

On May 3, the UK Financial Conduct Authority (FCA) published a document containing reporting instructions (Instructions) for trading venues and investment firms submitting position reports under the revised Markets in Financial Instruments Directive (MiFID II). Continue Reading