Highlights Recently Published Regulatory Notices August 16, 2018 – September 15, 2018

Recently Published Regulatory Notice 08 16 18 – 09 15 18

Highlights Recently Published Regulatory Notices

August 16, 2018 – September 15, 2018

From the Consolidated Audit Trail:

  • Issues Industry Member Technical Specifications, OATS to CAT Events Mapping and FAQs.

From Chicago Board Options Exchange:

  • Proposes amendments to delete provisions related to on-floor position transfers, amend permissible reasons for and procedures related to off-floor position transfers.
  • Issues summary of its Rule 6.9 Solicited Transactions as a quick reference guide.
  • Files rule change to amend and clarify the definition of a strategy order, clarify other definitions related to modified HOSS procedures and permit the entry of orders that offset imbalances after the strategy order cut-off time.
  • Publishes update to its procedures related to reporting of qualified contingent cross transactions t pots Regulatory Division.
  • Proposes amendment to its rules related to categories of registration and qualification examinations required for TPHs and associated persons who engage in trading on the exchange.
  • Issues notice of request for comment on a CE Council Concept Release that explores options to enhance the current industry education program.

From the Depository Trust Company:

  • Releases list of non-transferrable securities scheduled for destruction on or after November 16, 2018.
  • Announces it will reverse a previously implemented change to a Memo Seg indicator on PTS PTOP/PBS Voluntary Tenders and effective August 17, 2018.
  • Effective August 28, 2018, it will permit a Participant or Pledgee to designate one or more collateral management service providers, acting on their behalf, to receive reports and information from, and provide certain instructions to DTC regarding specified accounts of the Participant or Pledgee.
  • Receives SEC approval of rule filings related to Recovery and Wind-Down Plans, Market Disruptions and Forece Majeure and Loss Allocation rules.
  • Issues update related to the annual ISO standard maintenance process with testing beginning September 17, 2018, concluding on November 2, 2018.
  • `Announces details of the actions it will take on September 22, 2018 related to the deletion and re-announcement of certain conversion and warrants exercise events.
  • Effective November 5, 2018, it will make available to participants a file containing information that would allow the participant to reconcile transactions in the case of an outage at DTC.
  • Publishes list of non-transferrable securities scheduled for destruction on or after December 16, 2018.
  • Announces the availability, starting September 28, 2018 of a Position Adjustment Tool to its CA Web to allow participants to self-serve their firm’s positions adjustments.

From Fixed Income Clearing Corporation:

  • Advises participants of a September 24, 2 018 for the installation of its CMU RTTM Web Re-Write.
  • Issues reminder to participants that it will decommission certain MBS Clearing Reports that are obsolete with the implementation of Operations Novation and the elimination of Notification of Settlement.
  • Receives SEC approval of its MBS EPN rules that made corrections and provided transparency to its existing processes.

From FinCEN:

  • Grants exceptive relief from tis Beneficiary Rule under certain circumstances.


  • Seeks candidates for its Small Firm Advisory Committee vacancies.
  • Advises members of a rule change, amending its Rule 2360 increasing the position limit for conventional options on certain exchange-traded funds.
  • Issues request for comment to the CE Program under consideration by the CE Council.
  • Seeks comment on several change to the expansion of OTC equity trading volume data it publishes on its website.
  • Issues reminder to firm of the obligation under FINRA trade reporting rules and SEC rules when effecting OTC transactions in equity securities on a “net” basis.
  • Announces update to its REX System and effective February 25, 2018, it will no longer require a full social security number to be applied to an extension request.
  • Issues notice of recent SEC guidance regarding the use of third-party recordkeeping services to preserve records as required under SEC Rule 17a-4.

From the Municipal Securities Rulemaking Board:

  • Issues request for information from industry participant on the accessibility, methodology and utility of indices, yield curves and other benchmarks currently available in the municipal markets.
  • Issues request for comment on draft interpretive guidance related to “pennying” and draft amendments to existing guidance on best execution related to the posting of bid-wanteds on multiple trading platforms.
  • Seeks volunteers to participate in its Advisory Groups.

From Nasdaq:

  • Effective November 19, 2018 will introduce a new order entry protocol on its options exchanges.
  • Will extend the cutoff times on October 29, 2018, for its Closing Auction Process for MOC and LOC orders to 3:55 PM ET and 3:58 PM ET, respectively.
  • Announces the expansion of the type of trade reports to be carried over to the next day, are eligible to be broken, wand will apply logic pertaining to the submission of Breaks and Reversals.
  • Introduces the availability of anew Open Orders Combo report to provide members a daily file of all open GTC and complex orders.
  • The production launch of its FINRA/Nasdaq TRF Chicago will be on September 10, 2018 for a specific set of test securities and on September 24, 2018 for all NMS stocks.
  • Issues notice of upcoming changes to the SEC’s Tick Pilot program.
  • On Monday, November 5, 2018, it will add new fields to its NFN Daily List and NFN Symbol Directory.
  • Reminds members of the upcoming Reg SCI BC/DR test scheduled for October 13, 2018.
  • Files proposal to update the definition of “FINRA/Nasdaq Trade Reporting Facility” in light of the opening of a second FINRA/Nasdaq TRF in Chicago.

From National Securities Clearing Corporation:

  • Advises participant of a change in scope of its ACATS Modernization/Shortened Cycle initiative as well as the implementation schedule.
  • Releases testing and production dates for several industry initiatives.
  • Revises its target dates for ACATS enhancements.

From Options Clearing Corporation:

  • Issues instructions related to the expiration of Letters of Credit.
  • Publishes memorandum that summarizes the clearing guarantee for each of its stock loan programs.
  • Receives SEC approval to changes to its Clearing Fund methodology effective September 4, 2018.
  • Announces it determined a need to update underlying data used for member’s Clearing Fund allocations that may have resulted in changes to the member’s Clearing Fund requirements.

From the U.S. Securities & Exchange Commission:

  • Adopts amendments to the ’33 Act to certain of its disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded in light of other disclosure requirements, GAAPs, or change in the information environment.
  • Adopts amendments to the Municipal Securities disclosure Rule to add transparency to the market by increasing the amount of information publicly disclosed about material financial obligation incurred by issuers and obligated persons.
  • Issues a Fee Rate Advisory for fiscal year 2019 announcing that fees paid by public companies and other issuers to register their securities with the SEC will be set at $121.20 per million dollars.
  • Publishes No-Action Letter exempting orphaned fractional share transactions from its Confirmation Rule 10b-10.
  • With four other financial regulatory agencies extends until October 17, 2018 the comment period for a proposed rule to simplify and tailor compliance requirements for the “Volker Rule.”