Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

SEC Releases Statement on Expiration of Tick Size Pilot

Posted in Broker-Dealer

On September 10, the Securities and Exchange Commission announced the early expiration of its Tick Size Pilot Program. Under the program, the minimum quoting and trading increments (tick sizes) for stocks of certain smaller companies was widened. The program was intended to expire on October 2. However, due to concerns relating to a mid-week shifting in quoting and trading requirements and in response to several requests, the SEC issued exemptions to exchanges and to the Financial Industry Regulatory Authority to allow for the end of such requirements on September 28. Data collection and reporting requirements will continue for six months after the end of the program.

The SEC’s press release is available here.

NFA Issues Notice of Effective Date for Amendments to Security Futures Contracts’ Risk Disclosure Statement

Posted in CFTC

On September 12, the National Futures Association issued Notice I-18-15, announcing that the amendments to NFA’s Interpretive Notice entitled NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts (Interpretive Notice) will become effective on October 12. Continue Reading

CFTC and Monetary Authority of Singapore Sign Arrangement To Cooperate on FinTech Innovations

Posted in CFTC

On September 13, the Commodity Futures Trading Commission issued Release 7784-18, announcing that the CFTC and the Monetary Authority of Singapore signed the Cooperation Arrangement on Financial Technology Innovation (FinTech Arrangement) on September 13. The FinTech Arrangement supports both authorities’ efforts to facilitate FinTech development and innovation in their respective markets by focusing on information sharing on FinTech market trends and developments. This includes sharing insights derived from each authority’s relevant FinTech sandbox, proofs of concept and innovation competitions. The FinTech Arrangement also facilitates referrals of FinTech companies interested in entering the other’s market. This will help FinTech companies better understand and navigate the regulatory regime and capitalize on opportunities in each jurisdiction.

Release 7784-18 is available here.

FCA Releases New Video on Senior Managers and Certification Regime

Posted in Financial Markets, UK Developments

On September 10, the UK Financial Conduct Authority (FCA) released a video focused on the Senior Managers and Certification Regime (SM&CR).

The video emphasizes the importance of clarity of responsibilities and maintaining high standards under the SM&CR. For further details on the SM&CR, see the July 28, 2017 edition of Corporate & Financial Weekly Digest.

The FCA’s video can be viewed here.

FCA Publishes Approach to Becoming UK-Recognized Overseas Investment Exchange

Posted in Brexit, Financial Markets, UK Developments

On September 14, the UK Financial Conduct Authority (FCA) published a statement and direction clarifying how a market operator based in the European Economic Area (EEA) may make an application to become a recognized overseas investment exchange (ROIE), following the United Kingdom’s departure from the European Union (Brexit). Continue Reading

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets

On September 7, 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 DVC public register was last updated in July (for further details, see the July 13 edition of Corporate & Financial Weekly Digest).

ESMA has identified a total of 142 new breaches. Instruments in breach of the caps will be suspended from being traded under waivers between September 12, 2018 and March 1, 2019. Due to corrected data received by ESMA, four instruments previously identified as being in breach were incorrectly identified, and the relevant suspensions of trading under the waivers should be lifted.

As of September 7, a total of 674 instruments have been suspended.

ESMA’s announcement in relation to the updated DVC register is available here.

Joint Committees of ESAs Recommend Action To Address Risks and Uncertainties in EU Financial System

Posted in Brexit, EU Developments, Financial Markets

On September 11, the Joint Committee of the European Supervisory Authorities (ESAs) published a report on risks and vulnerabilities in the EU financial system, which sets out recommendations for policy action. Continue Reading

Amended FINRA Registration Rules To Take Effect October 1

Posted in Broker-Dealer

Amended Financial Industry Regulatory Authority registration, qualification and continuing education rules will become effective on October 1. The amended rules, which the Securities and Exchange Commission approved on October 13, 2017, will consolidate and replace the National Association of Securities Dealers, Incorporated New York Stock Exchange and existing FINRA registration rules.

Continue Reading

CFTC Extends Comment Period on Proposed Amendments to the Volcker Rule

Posted in CFTC

On September 4, the Commodity Futures Trading Commission, in conjunction with the Office of the Comptroller of the Currency, Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and Securities and Exchange Commission, extended the comment period on the proposed amendments to the regulations implementing Section 13 of the Bank Holding Company Act. Section 13, commonly known as the Volcker Rule, restricts the ability of a banking entity and nonbank financial company supervised by the Board to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund. The comment period, which was to close September 17, will now close October 17.

Notice of the extension of the comment period is available here.


NFA Releases Notice Regarding Swap Valuation Dispute Filing Process

Posted in CFTC

On September 6, the National Futures Association (NFA) sent a notice to its members with information regarding the Interpretive Notice to NFA Compliance Rule 2-49. NFA Compliance Rule 2-49 requires swap dealers and major swap participants (collectively, SDs) to promptly submit relevant information to the NFA in the form and manner prescribed by NFA. The Interpretive Notice, which went into effect on January 2, describes the swap valuation disputes that require notice and the information required to be reported. Further, if a reportable swap valuation dispute involves two SD counterparties, each SD must file a separate dispute notice with the NFA.

The NFA has noticed instances where a swap valuation dispute that involved two SD counterparties was filed by only one SD. The Notice reminds SDs that both SD counterparties must submit a swap valuation dispute report when it involves two SD counterparties. Furthermore, the Notice specifies that, in the event that the NFA receives a swap valuation dispute notice from only one SD, the NFA will provide limited information regarding the swap valuation dispute to the non-reporting SD to facilitate the non-reporting SD’s swap valuation dispute submission process.

The Interpretive Notice is available here.