Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

SEC Proposes Budget for Fiscal Year 2019

Posted in SEC/Corporate

On February 12, the Securities and Exchange Commission issued a press release announcing its budget request for fiscal year 2019, which represents a 3.5 percent increase over the SEC’s fiscal year 2018 budget request. In its press release, the SEC emphasized that its budget request reflects funding increases for enhancements to their “cybersecurity capabilities, risk and data analysis, enforcement and examinations, and automation of business processes,” noting the need to keep up with significant advances in technology in the areas that it regulates.

The SEC’s press release is available here, and the SEC’s fiscal year 2019 budget request is available here.


FINRA Issues Regulatory Notice Regarding Extension of Time Requests Relating to FINRA Rule 4210

Posted in Broker-Dealer

On February 14, the Financial Industry Regulatory Authority (FINRA) published a Regulatory Notice stating that it is updating the Regulatory Extension (REX) system to include increased functionality that will assist FINRA member firms in requesting extensions of time related to FINRA Rule 4210. This will include requests for extensions of time in connection with the margin requirements for Covered Agency Transactions that will become effective on June 25. Continue Reading

CFTC Issues Interim Final Rule To Reorder and Alphabetize Definition Regulation

Posted in CFTC

On February 15, the Commodity Futures Trading Commission published and requested comment on an interim final rule to amend the CFTC’s primary definition regulation in an attempt to make such regulation user-friendly. Specifically, the CFTC amended Regulation 1.3 to remove lettered paragraphs and reorder defined terms in alphabetical order. Related cross-references to Regulation 1.3 in other CFTC regulations were revised to remove references to the lettered paragraphs.

Comments on the interim final rule must be submitted to the CFTC by March 17.

The interim final rule is available here.


CFTC Issues Order of Registration to ICE Futures Singapore

Posted in CFTC

On February 12, the Commodity Futures Trading Commission issued an Order of Registration (Order) granting ICE Futures Singapore Pte. Ltd. (ICEFS) registration as a foreign board of trade. The Order permits ICEFS to provide its identified members and other participants located in the United States with direct access to its electronic order entry and trade matching system. The Order is subject to continued compliance by ICEFS with the regulatory supervision of the Monetary Authority of Singapore.

The CFTC reserved the right to condition, modify, suspend, terminate or otherwise restrict the terms of the Order in the future.

The Order of Registration is available here.


FCA Publishes Report on Algorithmic Trading

Posted in UK Developments

On February 12, the UK Financial Conduct Authority (FCA) published a report on algorithmic trading compliance in wholesale markets. The report highlights key requirements in the revised Markets in Financial Instruments Directive (MiFID II) relating to algorithmic trading activity, and contains examples of good and bad practices observed during the FCA’s reviews of FCA regulated firms. Continue Reading

European Commission Publishes Survey About the Functioning of the AIFMD

Posted in EU Developments

On February 8, the European Commission published an online survey about the functioning of the Alternative Investment Fund Managers Directive (AIFMD). Article 69(1) of the AIFMD requires the EC to have commenced by July 22, 2017, its review of the AIFMD’s scope and application. However, the review process has started late due to the EC’s focus on competing priorities, such as Brexit. Continue Reading

Warning to Consumers on Virtual Currency Risks Issued by EBA, EIOPA and ESMA

Posted in EU Developments

On February 12, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) (collectively the three European Supervisory Authorities (three ESAs)) published a joint warning to consumers relating to the high risks of buying and/or holding virtual currencies (such as Bitcoin, Ether and Ripple). Continue Reading

FCA Provides Update on EMIR United States Equivalence Decision and Intragroup Exemptions

Posted in EU Developments

On February 12, the United Kingdom Financial Conduct Authority (FCA) updated its webpage on the European Market Infrastructure Regulation (EMIR), about the equivalence decision for derivative transactions in the United States  adopted by the European Commission on October 13, 2017. The equivalence decision determined that the rules promulgated by the Commodity Futures Trading Commission on risk monitoring and mitigation for over-the-counter derivatives not cleared by a central counterparty are equivalent to EMIR. Continue Reading

ESMA Publishes Recommendation on Leverage and Liquidity in Investment Funds

Posted in EU Developments

On February 14, the European Systemic Risk Board (ESRB) published a recommendation (dated December 7, 2017) on liquidity and leverage risks in investment funds managed by regulated EU managers (specifically open-ended alternative investment funds (AIFs) and undertakings for collective investment in transferable securities (UCITS)). Continue Reading

SEC Approves NYSE Rule to Facilitate Listing Without an IPO

Posted in SEC/Corporate

On February 2, the Securities and Exchange Commissions approved a New York Stock Exchange (NYSE) rule change that facilitates the listing of companies on the NYSE without a prior registration statement under the Securities Exchange Act of 1934 (Exchange Act) in connection with an underwritten initial public offering. As previously discussed in the May 5, 2017 and June 30, 2017 editions of the Corporate & Financial Weekly Digest, the NYSE had previously filed and withdrew the proposed rule change. Thereafter, the NYSE elected to move forward with the rule change and filed amendments, including a final Amendment No. 3. The NYSE noted that the proposed rule change would enable the NYSE to compete for listings of companies that the NYSE believes would be able to list on the Nasdaq Stock Market, but would not be able to list on the NYSE under its then-current rules. Continue Reading