Highlights Recently Published Regulatory Notices 01-15 of December 2016


Highlights Recently Published Regulatory Notices

01 – 15 December 2016

From the CBOE:

  • Announces enhancements to the current drill through price protection features effective December 12, 2016.
  • Advises members that its Quote Risk Monitor feature will become mandatory for each market maker effective December 12, 2016.
  • Reminds members of the prohibition of prearranged trades.
  • Proposes to extend its Credit Option Margin Pilot program through July 18, 2017.
  • File rule proposal to provide a procedure for TPHs to efficiently reduce open positions in SPX options at the end of each calendar month thereby mitigating capital constraints while continuing the depth of liquidity.

From Depository Trust Company:

  • Announces enhancements to its ISO output to include the deliverer and receiver accounts when provided.
  • Receives SEC approval related to its Clearing Agency Investment policy.
  • File rules change to establish criteria under which it would impose/release a Deposit Chill or Global Lock and fair procedures for issuers to challenge the Chill or Lock.

From Fixed Income Clearing Corporation:

  • Reminds participants of the CCLF requirements for clearing members that have selected option 1 or 2 on the Officer’s Certificate effective January 3, 2017.
  • Advises participants of changes to TMPG Fail Charges effective December 15, 2016.
  • Announces the availability of the Daily Clearing Fund Reports reflecting the proposed amendments to the Clearing Fund Methodology.


  • Proposes rule changes to support the industry move to T+2 settlement cycle.
  • Announces several changes to its arbitration procedures.
  • Fines Credit Suisse Securities $16.5 million for anti-money laundering supervision and other violations.
  • Issues notice of its interpretation of the “as soon as practicable” requirements under its trade reporting rules.
  • Proposes to amend its rules to require ATSs to report a sequence number for all OATS reportable event types.
  • Issues list of important dates for calendar 2017.
  • Files amendments to its TRACE reporting rules to clarify the definition of Auction Transaction and When-Issued Transaction related to reporting of U.S. Treasury Securities to TRACE.
  • Issues its monthly disciplinary report for December 2016.
  • Updates TRACE specifications to include a Convertible Flag in the Security Master and Daily List fields and to eliminate the Fitch rating heading and value in the Most Active Print Media files.

From Internal Revenue Service:

  • Issues several updates on FATCA reporting.

From the Municipal Securities Rulemaking Board:

  • Issues guidance to the marketplace related to the application of its rules on managed accounts.

From North American Securities Administrators Association:

  • Request public comment regarding a proposed model statute and proposed model rule that would permit testing the waters in Tier 1 offerings conducted under federal Regulation A.

From Nasdaq:

  • Postpones under further notice, the expansion of the types of trade reports that will be carried over to the next day and be eligible to be broken and enforcing logic pertaining to the submission of Breaks and Reversals.
  • Publishes details related to the requirements of its members who are required to participate in Reg SCI testing.
  • Announces, in compliance with Reg NMS and Tick Size Pilot, it will modify the handling of orders in Test Group 3 securities that are repriced upon entry starting December 14, 2016.

From National Securities Clearing Corporation:

  • Announces a requirement for participants to provide to NSCC the MPIDs used for corporate and UIT executions submitted to clearing in order to populate the MPIDs on its Corporate Bond and UIT Executed by Broker Masterfile.
  • As part of its UAT testing of the Consolidated Trade Summary, NSCC will include a test of an unexpected market close event.
  • Proposes rule amendments to the Consolidated Trade Summary.

From New York Stock Exchange:

  • Issues notice of its expectation of its member’s use of FINRA Report Cards for market surveillance purposes.
  • Proposes rule changes in support of the industry’s move to T+2 settlement cycle.

From Options Clearing Corporation:

  • Announces a change of banks to which members deliver government securities.
  • Issues important dates for calendar year 2017.
  • Announces the Section 871(m) implementation date of December 23, 2016.

From the Securities & Exchange Commission:

  • Issues no-action letter to NSCC addressing situations in which a broker-dealer’s funds are deposited in NSCC’s Long Free account.