On November 12, the Commodity Futures Trading Commission (CFTC) published a proposed rule that would amend CFTC Regulation 160.30 by establishing specific requirements for policies and procedures to protect customer records and information (Detailed Requirements). The Detailed Requirements were inadvertently deleted in a 2011 amendment to the regulation.

Continue Reading CFTC Proposes Rule to Amend Regulation 160.30

On November 13, the National Futures Association (NFA) issued Notice to Members 1-19-25, announcing that amendments to NFA Compliance Rule 2-29 and NFA Compliance 2-36 will become effective on January 1, 2020.  Compliance Rules 2-29 and 2-36 and related Interpretive Notices establish requirements for an NFA Member’s communications with the public and use of promotional material.

Continue Reading Effective Date for Amendments to NFA’s Promotional Material Rules and Interpretive Notices

On November 11, the UK Financial Intelligence Unit (UKFIU) of the National Crime Agency (NCA) published its 2019 annual report on the functioning of the Suspicious Activity Report (SAR) regime.

The UKFIU noted an increase in the number of SARs and defense against money laundering (DAML) requests:

Continue Reading NCA Publishes SAR Annual Report

On November 4, the US Securities and Exchange Commission extended their October 26, 2017 “no-action” letter in relation to the research provisions in the Markets in Financial Instruments Directive II (MiFID II), so that it expires on July 3, 2023 rather than on July 3, 2020.

Continue Reading FCA Supports SEC “No Action” Extension for MiFID II

On November 11, the European Securities and Markets Authority (ESMA) published three sets of technical advice on tiering, comparable compliance and fees charged to third-country central counterparties (TC-CCPs). The advice is directed towards the European Commission (EC) and concerns the revised European Market Infrastructure Regulation (EMIR 2.2).

Continue Reading ESMA Publishes Technical Advice for Third-Country CCPs

On November 5, the Securities and Exchange Commission voted to propose amendments to Rule 14a-8 of the Securities Exchange of 1934 (Exchange Act) to address required share ownership thresholds for a proponent to submit a shareholder proposal, update the “one proposal” rule to clarify the rule that a person can only submit one proposal per meeting and amend the vote support thresholds required for a proponent to resubmit a shareholder proposal at subsequent shareholder meetings. Continue Reading SEC Proposes New Amendments to Modernize Shareholder Proposal Rules

On November 5, the Securities and Exchange Commission voted to propose amendments to the rules governing proxy solicitations to expressly apply them to proxy voting advisors. The proposed amendments would codify the SEC’s position that proxy voting advice is a “solicitation” within the meaning of the proxy rules, place certain disclosure requirements on proxy voting advice and define what would be impermissible false or misleading disclosure in the context of proxy voting advice. Continue Reading SEC Proposes Amendments Relating to Proxy Voting Advice

On November 4, the Securities and Exchange Commission extended temporary no-action relief to firms that are regulated in the United States in connection with their efforts to comply with the research provisions of the European Union’s Markets in Financial Instruments Directive II (MiFID II). Under the extension, the SEC staff will not recommend enforcement action under the Investment Advisers Act of 1940 against broker-dealers receiving payments in hard dollars or through research payment accounts from clients subject to MiFID II.

This no-action relief was set to expire July 3, 2020, but has now been extended until July 3, 2023.

The SEC No-Action Letter is available here.

The extension letter is available here.

On November 5, the Commodity Futures Trading Commission (CFTC) approved Foreign Board of Trade (FBOT) registration applications for three non-US exchanges to allow their members and other US participants to enter orders directly into their respective trade matching systems. The FBOTs receiving such approvals were: 1) Euronext Amsterdam N.V.; 2) Euronext Paris SA; and 3) the European Energy Exchange of Germany, bringing the total number of FBOTs registered with the CFTC to 21. Continue Reading CFTC Approves Three Foreign Board of Trade Applications

On November 1, the National Futures Association (NFA) issued Notice to Members I-19-22, announcing that NFA’s Swap Proficiency Requirements would launch and become accessible online on January 31, 2020 (Swap Proficiency Requirements). Each NFA Member with associated persons required to take the Swap Proficiency Requirements must designate at least one Swaps Proficiency Requirements Administrator who will coordinate enrollment and track progress.

The NFA Notice to Members is available here.