On November 9, the Securities and Exchange Commission approved a new supplement (Supplement) to the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD), published by the Options Clearing Corporation (OCC). The ODD provides general disclosures regarding the characteristics and risks of exchange traded options. Generally, broker-dealers must provide a customer with a copy of the ODD before accepting options orders from that customer. Continue Reading
On November 2, the Securities and Exchange Commission adopted amendments to Rule 606 of Regulation NMS in order to require broker-dealers to provide certain individualized disclosures to customers with respect to the firm’s handling and execution of orders. This disclosure would only be required upon the request of a customer in connection with certain orders that grant discretion to the firm with respect to the price and time of execution.
The SEC also adopted amendments to the order routing disclosures that broker-dealers are required to make public on a quarterly basis. The amendments increase certain targeted disclosure requirements.
More information is available here.
On November 12, the Financial Stability Board (FSB) published the final version of its cyber lexicon and an accompanying press release.
The FSB’s cyber lexicon is a set of approximately 50 core terms related to cybersecurity and cyber resilience in the financial sector, but is not intended to be a comprehensive lexicon of all cybersecurity and cyber resilience-related terms. Continue Reading
On November 14, a technical agreement was reached between the negotiators of the UK and the EU in relation to the terms of the withdrawal of the UK from the EU (the Withdrawal Agreement). Published alongside the Withdrawal Agreement was a non-binding Political Declaration, providing an overview of the intended future relationship between the UK and EU. Continue Reading
On November 12, the European Securities and Markets Authority (ESMA) published version 13 of its questions and answers document (Q&As) on the Market Abuse Regulation (MAR).
The Q&As now include a new question, 7.10, relating to the scope of the trading restrictions for persons discharging managerial responsibilities (PDMRs) during a closed period under MAR. Continue Reading
On November 13, the European Commission (EC) published a statement by Vice-President Valdis Dombrovskis on the regulation of cryptoassets and initial coin offerings (ICOs), which he presented at the European Parliament Plenary debate in Strasbourg.
Key takeaways include: Continue Reading
On November 14, the European Securities and Markets Authority (ESMA) published the following updated questions and answers document (Q&As):
- an updated version of the Q&As on transparency topics under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). ESMA has added two points to Q&A 7 and modified Q&A 10 in section 2 of the Q&As (General Q&As on transparency topics), and added a new Q&A 11 to section 7 (the systematic internalizer regime); and
- an updated version of the Q&As on market structures topics under MiFID II and MiFIR. ESMA has added a new Q&A 29 to section 3 (direct electronic access and algorithmic trading).
The updated Q&As on transparency topics are available here.
The updated Q&As on market structures topics are available here.
On November 14, the European Securities and Markets Authority (ESMA) published its updated questions and answers document (Q&As) on the implementation of the Short-Selling Regulation (SSR). Continue Reading
On November 13, the European Securities and Markets Authority (ESMA) published a number of documents relating to the implementation of the EU Securitization Regulation, supporting the new European framework for securitizations: Continue Reading
On November 13, the European Securities and Markets Authority (ESMA) published an updated version of its supervisory briefing on the suitability requirements of the revised Markets in Financial Instruments Directive (MiFID II).
This briefing introduces European supervisors to MiFID II suitability rules, which require investment firms providing investment advice or portfolio management services to provide suitable personal recommendations to their clients or make suitable investment decisions on behalf of their clients. Continue Reading