The Commodity Futures Trading Commission (CFTC) has announced that its Global Markets Advisory Committee (GMAC) will hold a meeting on March 11 at 9:00 a.m. (ET). At this meeting, the GMAC will hear presentations and provide dialogue on matters related to retail participation in the derivatives markets.
Continue Reading CFTC Announces Global Markets Advisory Committee Meeting

On February 12, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 21-04 (Notice), in connection with an amendment to FINRA’s Codes of Arbitration Procedure for Customer and Industry Disputes, regarding certain fees paid to arbitration chairpersons. FINRA Rules 12214 and 13214 were amended to increase the hearing-day chairperson fee from $125 to $250 to better compensate the chairperson for the additional training and responsibilities required of the position. Additionally, the amendments establish a new chairperson fee for an additional $125 for each prehearing conference that the chairperson leads, even if an arbitration case closes without a hearing.
Continue Reading FINRA Amends Arbitration Codes to Increase Arbitrator Chairperson Fees and Certain Arbitration Fees

On February 16, the Financial Industry Regulatory Authority (FINRA) issued an Information Notice (Notice) regarding a new fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets. Such fee rate will decrease from its current rate of $22.10 per million dollars in transactions to a new rate of $5.10 per million dollars in transactions.
Continue Reading New Rate for Fees Paid Under Section 31 of the Exchange Act

On January 13, the Commodity Futures Trading Commission’s Market Participants Division determined that the National Futures Association’s (NFA) swap dealer capital model requirements and review program are comparable with the CFTC’s swap dealer capital model requirements and review program. As a result, a capital model approved by NFA will be accepted as an alternative means of compliance with CFTC Regulation 23.102.
Continue Reading CFTC Approves NFA’s Swap Dealer Capital Model Review Program

On December 16, the Securities and Exchange Commission announced that it adopted a rule to limit the potential for overlapping or duplicative regulation within its security-based swap regulatory regime. Specifically, the rule exempts certain activities of security-based swap execution facilities (SEFs) and security-based swap dealers from triggering the requirement also to register as a clearing agency. The adopted rule is in line with similar exemptions for broker-dealers and national securities exchanges.
Continue Reading SEC Adopts Clearing Agency Rule to Limit Potential for Overlapping or Duplicative Regulation

On December 16, the Securities and Exchange Commission voted to adopt final rules that will require resource extraction issuers that are required to file reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) to disclose payments made to the US federal government or foreign governments for the commercial development of oil, natural gas or minerals.
Continue Reading SEC Adopts Final Rules for the Disclosure of Payments by Resource Extraction Issuers

On November 6, the Commodity Futures Trading Commission (CFTC) announced that it had issued an Order of Registration to ICE Futures Abu Dhabi Limited (IFAD), a Foreign Board of Trade (FBOT) incorporated in the Abu Dhabi Global Market and located in Abu Dhabi, United Arab Emirates.
Continue Reading CFTC Issues Order of Registration to ICE Futures Abu Dhabi Limited to Permit Trading by Direct Access from the United States

On October 22, the staff of the Division of Trading and Markets of the Securities and Exchange Commission (DTM) issued a no-action letter (the No-Action Letter) to the Financial Industry Regulatory Authority (FINRA) providing time-limited relief for broker-dealers operating fully paid lending programs (FPL Programs) in which they borrow fully paid and excess margin securities from their customers without complying with the requirement that the broker-dealer physically deliver collateral supporting the loan to the customer making the loan. Paragraph (b)(3) of SEC Rule 15c3-3 (the customer protection rule) requires that a broker-dealer that borrows fully paid or excess margin securities from a customer enter an agreement with such customer that requires the broker-dealer to:
Continue Reading SEC Staff Issues No-Action Relief Addressing Customer Protection Rule Violations Despite the Objection of Two Commissioners

On October 29, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-38, announcing FINRA’s adoption of a new rule to limit any associated person of a member who is registered with FINRA (a “registered person”) from being named a beneficiary, executor or trustee, or having a power of attorney or similar position of trust on behalf of a customer. New FINRA Rule 3241 (Registered Person Being Named a Customer’s Beneficiary or Holding a Position of Trust for a Customer) is designed to protect investors from undue and inappropriate influence over important financial decisions by requiring members to review its registered persons who are beneficiaries or hold positions of trust for customers.
Continue Reading FINRA Adopts Rule to Restrict Registered Person’s Ability to be a Beneficiary or Hold Position of Trust

On October 15, the Financial Industry Regulatory Authority (FINRA) released an information notice (Notice) providing additional background on authentication techniques for firms to consider as they implement cybersecurity authentication programs.
Continue Reading FINRA Releases Information Notice on Cybersecurity Authentication Methods