Highlights Recently Published Regulatory Notices from 16-30 October 2016


Highlights Recently Published Regulatory Notices

16 -31 of October 2016

From the Department of Labor:

  • Issues first list of Frequently Asked Questions on the application of its Conflicts of Interest rule.

From Depository Trust Company:

  • Announces beginning on November 4, 2016 it will display additional fields and values for certain activity codes on the PTS Reorg Inquiry for Participants (RIPS) online and the equivalent Reorganization and Redemption functions.
  • Publishes procedures for issuers to follow for securities to become and remain eligible securities at DTC under IRS Code Section 871(m) effective on January 1, 2017.
  • Enhances the “Forgot Password” functionality on its portal login page.

From FinCEN:

  • Issues advisory to assist financial institutions in understanding their Bank Secrecy Act obligations regarding cyber events and cyber enabled crimes.


  • Announces SEC approval of amendments to TRACE Reporting and dissemination rules which will provide for the dissemination of transactions in CMOs.
  • Fines Merrill Lynch $2.8 million related to several deficiencies in trade reporting, OATS reporting, books and records and failure to supervise.
  • Issues notice of upcoming District Committee elections.
  • Publishes updated Technical Specifications for TRACE reporting to address the newly approved requirement to report transactions in U. S. Treasury securities.
  • Files rule proposal to address the exploitation of seniors and other persons.
  • Receives SEC approval to rules establishing “pay-to-play” rules regarding activities of members engaged in distribution or solicitation activities for compensation with government entities on behalf of investment advisers.
  • Updates its Tick Size Pilot program Appendix B & C reporting specifications and frequently asked questions.
  • Issues request for information under a Targeted Exam Letter related to Cross Selling programs within broker-dealers.

From Municipal Securities Rulemaking Board:

  • Issues discussion of topics reviewed during its most recently Board of Directors meeting.


  • Proposes additional Commentary .14 to Rule 4770 to provide the SEC with notice of its efforts to re-program its systems to eliminate a re-pricing functionality for certain orders in Test Group Three securities in connections with the Reg NMS Plan to Implement a Tick Size Pilot program.
  • Announces expansion of the types of trade reports to be carried over to the next trading day and eligible to break and will enforce logic related to the submission of breaks and reversals.
  • Issues notice of functionality to allow Post Only orders for securities trading at or above one dollar to lock contra-side non-displayed orders resting on its exchange book.

From National Securities Clearing Corporation:

  • NSCC and FICC announces SEC approval of its rule filing to changes its Backtesting and Holiday Charges.
  • Reminds participants of the upcoming changes effective in production on October 28, 2016 to RTTM.
  • Issues notice of proposed rule changes to its trade guaranty, clearing fund formulas, mark-to-market processing and loss allocation processing.
  • Publishes plans and details related to its initiative to short the cycle in which an ACAT can be processed.

From Options Clearing Corporation:

  • Receives SEC approval of the restructuring of its Escrow Deposit program.
  • Proposes modifications to its By-Laws and Rules to ensure that it is not liable for U.S. Withholding Tax on certain transactions entered into by Clearing Members that are treated as non-U.S. persons for federal income tax purposes.
  • Issues reminder to members describing the manner in which an option may lose value when an adjustment is made on an option that substitutes cash for all or part of a deliverable security.

From the Officer of the Comptroller of Currency:

  • OCC issues FAQs on the FFIEC Cybersecurity Assessment Tool.

From the Securities & Exchange Commission:

  • Proposes amendments to its proxy rule to require the use of universal proxies in all non-exempt solicitations connected to contesting elections of directors other than registered investment and business development companies.
  • Adopts amendments to modernize ’33 Act Rule 147 including a new exemption Rule147A which will have no restriction on offers and allows issuers to be incorporated or organized outside of the state in which the intrastate offering is conducted provided certain conditions are met.

From the U.S. T+2 Committee:

  • Release version 2 of its DTC, NSCC and Omego Functional Changes.