Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: FINRA

FINRA Proposed Rule Change to the Consolidated Audit Trail

Posted in Broker-Dealer
In February, pursuant to Regulation NMS, the various national securities exchanges and the Financial Industry Regulatory Authority (each, a Participant) filed with the Securities and Exchange Commission a plan (Plan) to create, implement and maintain a consolidated audit trail (CAT) to capture information related to customers and order events for transactions in NMS securities and… 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.  … Continue Reading

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… Continue Reading

National Adjudicatory Council Revises Sanction Guidelines

Posted in Broker-Dealer
The Financial Industry Regulatory Authority, through the National Adjudicatory Council (NAC), has revised the FINRA Sanction Guidelines that hearing panels and the NAC use in determining appropriate remedial sanctions for FINRA members in disciplinary proceedings. Among other changes, the revised Sanction Guidelines include the following additions: three new guidelines: Supervision—Systemic Supervisory Failures, Borrowing From or… Continue Reading

FINRA Issues Regulatory Notice on GASB Accounting Support Fee

Posted in Broker-Dealer
The Financial Industry Regulatory Authority announced that it will collect a total of $8,309,000 in 2017 from its member firms as part of the Government Accounting Standards Board (GASB) Accounting Support Fee. FINRA will collect $2,077,250 each calendar quarter beginning in April 2017 from its member firms that report trades to the Municipal Securities Rulemaking Board… Continue Reading

FINRA Updates Web API Specifications for the TRACE Securitized Products

Posted in Broker-Dealer
The Financial Industry Regulatory Authority recently released a document outlining updates to the TRACE Web Application Programming Interface (API). This new update, Version 5.0, affects only securitized products. As mentioned in the FINRA Regulatory Notice, effective May 16, 2011, securitized products include asset-backed securities, mortgage-backed securities and other similar securities. The document provides the new… Continue Reading

FINRA Seeks Comment on Engagement Programs

Posted in Broker-Dealer
The Financial Industry Regulatory Authority has issued a notice requesting public comment on how to improve industry and public engagement. The notice focuses on various engagement processes and programs, including advisory, ad hoc and district committees, FINRA’s rulemaking process, member relations programs, education and compliance programs and reporting on FINRA operations. The notice is part… Continue Reading

FINRA Proposes Rule to Revise Qualification and Registration Requirements

Posted in Broker-Dealer
On March 8, the Financial Industry Regulatory Authority filed a proposed rule change with the Securities and Exchange Commission to adopt amendments to the qualification and registration requirements for associated persons. The proposed rule change restructures the current qualification examinations, creates a general knowledge examination and specialized knowledge examinations, and revises the continuing education requirements.… Continue Reading

FINRA Proposes Amendments to Rule Pertaining to Communications with the Public

Posted in Broker-Dealer
The Financial Industry Regulatory Authority (FINRA) is seeking comment with respect to proposed amendments (the “Proposed Amendments”) to FINRA Rule 2210 (Communications with the Public). The Proposed Amendments would create an exception to FINRA’s general prohibition on projected performance and would be applicable to all FINRA-member firms. The Proposed Amendments would allow firms to present… Continue Reading

SEC Approves Pricing Disclosures for Fixed Income Securities

Posted in Broker-Dealer
The Securities and Exchange Commission has approved amendments to Financial Industry Regulatory Authority (FINRA) Rule 2232 (Customer Confirmations) that require FINRA-member firms to disclose additional information to retail customers with respect to transactions in certain fixed income securities (the “Final Rules”). The Final Rules require the disclosure in customer confirmations of (1) the mark-up or… Continue Reading

FINRA Files Proposed Rules With The SEC To Implement Consolidated Audit Trail Plan

Posted in Broker-Dealer
The Financial Industry Regulatory Authority (FINRA) has filed proposed rules with the Securities and Exchange Commission to adopt FINRA Rule 6800 Series, which is designed to implement the compliance rule regarding the National Market System (NMS) Plan Governing the Consolidated Audit Trail. Pursuant to Regulation NMS, various exchanges have filed with the SEC a plan to… Continue Reading

FINRA and ISG Update Electronic Blue Sheet Data Elements

Posted in Broker-Dealer
The Financial Industry Regulatory Authority (FINRA) and the US members of the Intermarket Surveillance Group (ISG) have updated various data elements for Electronic Blue Sheet (EBS) to include codes for the MIAX Pearl. The FINRA and ISG also have updated the data elements for EBS to include transaction type identifiers for each of “non-program trading,… Continue Reading

FINRA Issues Report on Implications of Blockchain

Posted in Broker-Dealer
On January 18, the Financial Industry Regulatory Authority, responding to increased industry interest in distributed ledger technology (DLT) known as “Blockchain,” issued a report on the uses and potential implications of this technology in the securities industry. The report provides an overview of DLT and its applications in various markets as well as discussing governance,… Continue Reading

FINRA Publishes 2017 Regulatory and Examination Priorities Letter

Posted in Broker-Dealer
On January 4, the Financial Industry Regulatory Authority published its Annual Regulatory and Examinations Letter (Priorities Letter), which outlines the key areas on which FINRA intends to focus during its 2017 exam period. The areas of emphasis set forth in the Priorities Letter are based on observations from FINRA’s regulatory programs and additional input from… Continue Reading

FINRA Interprets “As Soon As Practicable” Requirement Under Trade Reporting Rules

Posted in Broker-Dealer
The Financial Industry Regulatory Authority has issued a notice clarifying the “as soon as practicable” requirement under FINRA reporting rules for transactions effected over-the-counter (OTC). As background, FINRA rules provide that OTC trades in national market system (NMS) securities that are executed during the hours that a FINRA trade reporting facility is open must be… Continue Reading

SEC Approves Amendments to Rules Governing Communications With the Public

Posted in Broker-Dealer
On October 26, the Financial Industry Regulatory Authority announced that the Securities and Exchange Commission approved amendments to the FINRA rules governing communications with the public. The amendments revise the filing requirements in FINRA Rule 2210 (Communications with the Public) and Rule 2214 (Requirements for the Use of Investment Analysis Tools) and the content and… Continue Reading

SEC Approves FINRA’s TRACE Amendments for CMO Transactions

Posted in Broker-Dealer
The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s amendments to its Trade Reporting and Compliance Engine (TRACE) rules to provide for dissemination of transactions in collateralized mortgage obligations (CMOs), and to reduce the reporting time for CMO transactions. Specifically, FINRA will disseminate trade-by-trade information relative to CMO transactions valued under $1… Continue Reading

SEC Approves FINRA’s TRACE Amendments for US Treasury Securities

Posted in Broker-Dealer
The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s amendments to its Trade Reporting and Compliance Engine (TRACE) rules to provide for reporting of transactions in “US Treasury securities,” which includes all securities issued by the US Treasury Department, with the exception of savings bonds. As a consequence, the TRACE reporting requirements… Continue Reading

“Trade Match” and “Trade Acceptance” Clearing Submissions on FINRA’s Alternative Display Facility

Posted in Broker-Dealer
On October 7, the Financial Industry Regulatory Authority issued a Trade Reporting Notice regarding its Alternative Display Facility (ADF). In particular, member firms that use the ADF to report over-the-counter trades in national market system stocks can elect to have their trades submitted by the ADF to the National Securities Clearing Corporation (NSCC) for clearance… Continue Reading

FINRA To Publish Block-Size Trade Data for ATS Trades

Posted in Broker-Dealer
On October 3, the Financial Industry Regulatory Authority began publishing monthly data on block-size trades occurring on alternative trading systems (ATSs). Statistics for ATS block-size trades are being aggregated across all National Market System (NMS) stocks for a one-month trading period and will be published no earlier than one month following the end of the… Continue Reading