On April 23, the UK Financial Conduct Authority (FCA) published a report on payment for order flow (PFOF).
The report provides an update on the FCA’s supervisory work on conflicts of interest and PFOF, and it follows the FCA’s preliminary findings that were published in issue 56 of its Market Watch newsletter (as reported in the September 28, 2018 edition of Corporate & Financial Weekly Digest).
Continue Reading FCA Publishes Report on Payment for Order Flow
On November 28, as part a retrospective rule review, the Financial Industry Regulatory Authority (FINRA) requested comments on Rule 5250 (payments for market makers). FINRA’s retrospective rule review process examines significant rulemaking to determine whether the FINRA rule or rule set is meeting its intended objectives by reasonably efficient means and, as necessary, make any amendments to the rules based on these findings.
Continue Reading FINRA Requests Further Comments on the Effectiveness and Efficiency of Its Payments for Market Making Rule
On December 4, the National Futures Association (NFA) submitted proposed amendments to NFA Compliance Rule 2-36 and Rule 2-43 to the Commodity Futures Trading Commission.
The amendment to NFA Compliance Rule 2-36 will require forex dealer members (FDM) to disclose to customers on a per-trade basis: (1) any commissions or other fees charged; (2) for FDMs using a straight-through processing (STP) model, any mark-up or mark-down imposed on the price received from the liquidity provider for the offsetting position; and (3) for FDMs using a non-STP model, the mid-point spread cost. Further, the amendment will require FDMs not using the STP model to provide customers with a description of the mid-point spread cost in a form and manner acceptable to the NFA.
Continue Reading NFA Proposes to Amend NFA Compliance Rules 2-36 and 2-43
On March 3, the UK Financial Conduct Authority (FCA) published a Press Release summarizing how firms have been failing to meet expectations on their use of dealing commission, based on a review of 31 investment managers between 2012 and 2015.
Continue Reading FCA Summarizes Findings of a Review on the Use of Dealing Commission
