Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

FINRA Encourages Firms To Disclose Activities Related to Digital Assets

Posted in Broker-Dealer

On July 6, the Financial Industry Regulatory Authority published Regulatory Notice 18-20, which encourages member firms to promptly notify FINRA if the firm or any of its associated persons or affiliates engages or intends to engage in any activities involving digital assets, such as cryptocurrencies and other virtual coins and tokens. Digital assets activities include those relating to digital assets that are not securities and the activities under Rule 3270 (Outside Business Activities of Registered Persons) and Rule 3280 (Private Securities Transactions of an Associated Person). Continue Reading

SEC Sets Agenda for Fixed Income Market Structure Advisory Committee Meeting

Posted in Broker-Dealer

On July 16, the Securities Exchange Commission will host a meeting of the Fixed Income Market Structure Advisory Committee. The agenda includes the following items for discussion:

  1. Pre-Trade Transparency Under MiFID II
  2. Current State of Pre-Trade Transparency in the US Corporate Bond Market
  3. Current State of Pre-Trade Transparency in the US Municipal Securities Market
  4. Electronic Trading Venue Regulation—Draft Recommendation
  5. ETFs and Bond Funds Subcommittee Update

The meeting is open to the public and will be held at the SEC headquarters in Washington, DC. A live webcast will be available through the SEC’s website. More details are available here.


SEC Open Meeting Agenda Announced

Posted in Broker-Dealer

On July 18, the Securities Exchange Commission will host an open meeting to discuss various regulatory proposals. Among other agenda items, the meeting will cover whether the SEC should adopt amendments to Rule 3a1-1 and Regulation ATS and new Form ATS-N under the Securities Exchange Act of 1934 related to certain alternative trading systems (ATSs).

The SEC originally proposed creating Form ATS-N in 2015. If adopted, Form ATS-N would require NMS Stock ATSs to publicly disclose detailed information about the operations and activities of a broker-dealer operator and its affiliates. More information about the proposal is available in the November 20, 2015 edition of Corporate & Weekly Financial Digest.

Information about the upcoming open meeting is available here.

FINRA Launches Enhanced Public Records Review

Posted in Broker-Dealer

On July 5, the Financial Industry Regulatory Authority announced an enhanced disclosure review process of individuals seeking registration with a brokerage firm. As of July 9, FINRA intends to conduct a public records review of an individual after a Form U4 is submitted for such individual’s registration. FINRA will contact the applicant’s firm within 15 calendar days of the submission of the application if FINRA’s review indicates that the Form U4 information is incomplete or contains discrepancies. FINRA’s enhanced public records review does not relieve firms or registered representatives of their duty to keep their records up to date.

More information is available here.

ISDA Publishes IBOR Replacement Consultation

Posted in Derivatives

On July 12, the International Swaps and Derivatives Association (ISDA) published a document entitled Consultation on Certain Aspects of Fallbacks for Derivatives Referencing GBP LIBOR, CHF LIBOR, JPY LIBOR, TIBOR, Euroyen TIBOR and BBSW (Bank Bill Swap Rate) that is intended to solicit market input on how the derivatives markets can best create alternatives to the interbank offered rates (IBORs) currently referenced in derivatives transactions. This is one of many current market initiatives that are responding to the likelihood that many IBORs will cease to be published or cease to have appropriate liquidity after 2021 and must therefore be replaced by new benchmark rates based on the overnight risk-free rates (RFRs) that are being adopted for each major currency. Continue Reading

UK Regulations Published, Amending FSMA To Implement EU Prospectus Regulation

Posted in EU Developments, Financial Markets, UK Developments

On June 29, the Financial Services and Markets Act 2000 (Prospectus and Markets in Financial Instruments) Regulations 2018 were published. The Regulations make some minor amendments to the Financial Services and Markets Act 2000 (FSMA) for the purposes of the United Kingdom’s implementation of part of the new EU Prospectus Regulation (Prospectus Regulation). Continue Reading

First European Union (Withdrawal) Act Delegated Legislation Created

Posted in Brexit, Financial Markets, UK Developments

On July 3, the Department for Exiting the European Union created the European Union (Withdrawal) Act 2018 (Commencement and Transitional Provisions) Regulations 2018 (Regulations). The United Kingdom’s European Union (Withdrawal) Act 2018 (Act) delegates power to make such provisions. Continue Reading

FCA Proposes New Financial Services Workers Directory and Announces Date for New SM&CR Regime

Posted in Financial Markets, UK Developments

On July 4, the UK Financial Conduct Authority (FCA) issued a press release announcing its proposal to introduce a new public directory of the status and history of individuals working in financial services (including information on their prior employers, any enforcement actions, prohibitions, etc.). Continue Reading

UK Government Unveils Brexit White Paper

Posted in Brexit, EU Developments, Financial Markets, UK Developments

On July 12, the UK Department for Exiting the European Union published a white paper, which sets out the United Kingdom’s proposal for the UK-EU relationship after the United Kingdom’s withdrawal from the European Union on March 29, 2019 (Brexit) through what it terms “an association agreement.” Notably, the white paper features differing approaches with respect to movement of goods, services and people. Continue Reading

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets

On July 6, the European Securities and Markets Authority (ESMA) updated its public register with the latest set of double volume cap (DVC) data under the revised Markets in Financial Instruments Directive (MiFID II). The update follows last month’s update to the DVC public register (for further details, see the June 15 edition of Corporate & Financial Weekly Digest). Continue Reading