Susan Light

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On June 22, Securities and Exchange Commission Chairman Jay Clayton and Brett Redfearn, the Director of the SEC’s Division of Trading and Markets, spoke together on an SEC-sponsored virtual forum about modernizing the US Equity Market Structure. Chairman Clayton identified the market for thinly traded securities, retail fraud and National Market System (NMS) market data and access as three current targets for SEC initiatives.…
Continue Reading SEC Chairman Speaks on Modernizing US Equity Market Structure

On June 19, the Financial Industry Regulatory Authority (FINRA) issued a regulatory notice that it had amended its Capital Acquisition Broker (CAB) suitability rule and rules governing non-cash compensation to align with the Securities and Exchange Commission’s Regulation Best Interest (Reg BI) with respect to the requisite standards of conduct.…
Continue Reading SEC Approves Changes to FINRA’s Suitability and Non-Cash Compensation Rules

On June 15, Securities and Exchange Commission Chairman Jay Clayton made a public statement (Statement) covering several topics related to Regulation Best Interest (Reg BI) and Form CRS. Chairman Clayton confirmed that the compliance date for Reg BI and Form CRS will be June 30, 2020 and emphasized the SEC’s focus on issues related to Main Street investors, including the creation of a new investor-focused resource to assist such investors with reviewing the Form CRS and researching firms and financial professionals.…
Continue Reading SEC Chairman Clayton Provides Public Statement Regulation Best Interest and Form CRS

On June 17, the New York Stock Exchange (NYSE) filed with the Securities and Exchange Commission a series of proposed rule changes (Rule Changes) that aim to support the partial return of Designated Market Makers (DMMs) to NYSE’s New York trading floor. For a temporary period that begins on June 17, 2020, and ends on the earlier of a full reopening of the New York trading floor facilities to DMMs or after the NYSE closes on June 30, 2020 (Covered Period), the following Rule Changes would apply:…
Continue Reading NYSE Proposes Rule Changes Regarding the Partial Re-Opening of the Trading Floor

On June 10, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-17, which addresses changes to the Problem Codes that FINRA members are required to use for self-reporting customer complaints. These changes are designed in part to account for the new Regulation Best Interest and Form CRS requirements that take effect on June 30.…
Continue Reading FINRA Revises Problem Codes for Reporting Customer Complaints and for Filing Documents Online

According to the Financial Industry Regulatory Authority (FINRA), financial institutions are allocating significant resources to developing applications that use artificial intelligence (AI) to offer innovative products, increase revenues, cut costs and improve customer service. …
Continue Reading FINRA Releases White Paper on Artificial Intelligence

On June 1, Cboe Exchange, Inc. (Cboe) filed with the Securities and Exchange Commission a proposed rule change to amend Rule 8.16 and Rule 9.2 to temporarily extend the filing deadline for certain supervision-related reports, which Cboe previously extended from April 1 to June 1 and from June 1 to June 30. …
Continue Reading CBOE Exchange Proposes to Temporarily Extend the Filing Deadline for Certain Supervision-Related Reports

On May 28, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-16 to share common themes observed through discussions with small, mid-size and large firms about the steps they reported taking to transition their associated persons and supervisory procedures to a remote work environment during the coronavirus (COVID-19) pandemic.…
Continue Reading FINRA Shares Practices to Transition to a Remote Work Environment during COVID-19

On May 15, the Securities and Exchange Commission adopted amendments to the national market system plan governing the consolidated audit trail (the CAT NMS Plan). The Financial Industry Regulatory Authority (FINRA) and the national securities exchanges that are CAT NMS Plan participants (the Participants) are now required to publish and file with the SEC a…