Highlights Recently Published Regulatory Notices 16-31 of August 2016

08 16 16 – 08 31 16 Recently Published Regulatory Notices

Highlights Recently Published Regulatory Notices

16 – 31 of August 2016

From Chicago Board Options Exchange:

  • Announces it will inactivate its “Re-COA” process in all classes traded on its market on August 29, 2016 and the availability of an optional new “Do-Not-COA” order handling instruction.
  • Updates its members that the SEC has approved its rule change to delete the definition of Tied to Stock orders and the related order marking requirements from its rules.
  • Proposes amendments to its rules to specify the manner in which minimum increment provisions apply to SPX Combo orders.

From Depository Trust Company:

  • Responding to agent’s non-compliance with DTC’s initial notification timeline, starting January 1, 2017, it will assess an exception processing fee of $5000 per CUSIP to Agent for the facilitation of Maturity for stock redemptions.
  • Announces an industry conference call scheduled for September 14, 2016 on which it will discuss its Matching Utility Interoperability initiative.

From Fixed Income Clearing Corporation:

  • Announces changes to the manner in which it distributes investment income earnings of Participant’s Clearing Fund.


  • In January 2017, FINRA will implement a new Short Interest Reporting System.
  • Announces effective September 12, 2016, firms electing to use the ADF for trade reporting purposes only are subject to annual testing requirements and connection fee charges.
  • Publishes a SEC No-Action Letter related to the prompt transmittal of customer checks to an introducing broker-dealer’s clearing firm.
  • Reminds firms of the requirement to use Intermarket Sweep Order trade reporting modifiers when reporting a trade to a FINRA facility that qualifies for the exception to the Trade-At provision of the Tick Size Pilot program.
  • Files a rule change to modify certain data collection requirements of the Tick Size Pilot program.
  • Issues request for comment on a proposal in which it would provide an inter-dealer quotation facility for all OTC equity securities.
  • Posts FAQs related to the requirement to provide educational information to clients in the event of an account transfer.

From MSRB:

  • Announces that the SEC has approved its rule change to Close Out procedures reducing the timeframe to 10 calendar days effective November 16, 2016.

From:  Nasdaq:

  • Updates its members with notice that its new price protection on incoming limit orders exceeding pre-set standard limits will not be starting on August 22, 2016 and a new date will be announced shortly.
  • Reminds members of the availability of testing in September and October of the Tick Size Pilot and announces schedule for publishing the list of securities and group assignments for the Tick Size Pilot.
  • Announces details of its routing of orders to the new IEX exchange.

From National Securities Clearing Corporation:

  • Announces details of its release in September 2016 of Insurance and Retirement Services processing.

From New York Stock Exchange:

  • Issues reminder to its members and employees of the policies governing conduct on the Exchange’s premises and trading floors.
  • Proposes to eliminate orders with a sell “plus” and buy “minus” instruction for all securities in an effort to streamline its rules and reduce complexity in its order types.
  • Files a proposed rule change to address the requirements of the SEC’s Tick Size Pilot program.

From Options Clearing Corporation:

  • Proposes changes to its Escrow Deposit program
  • Announces a new stock loan fee adding a monthly 0.4 basis point annualized charge for borrowers on average daily notational outstanding balances.

From the Public Company Accounting Oversight Board:

  • Issues its annual report detailing the results of inspections conducted in 2015.

From the Securities & Exchange Commission:

  • Posts No-Action Letter related to the treatment as an allowable asset of margin posted by broker-dealers in Swap transactions.
  • Announces enforcement action against 71 municipal issuers and other person for violations of required disclosures in municipal bond offerings.
  • Adopts amendment to the Investment Advisers Act rule, registration and reporting forms to require enhanced reporting related to separately managed accounts and disclosure of information by investment advisers.
  • Amended Rule 13n-4 of the ’34 Act to require that security-based swap data repositories make data available to certain regulatory and other authorities.
  • Approves proposed bylaw change by SIPC related to assessments on SIPC member broker-dealers.