Financial Industry Regulatory Authority
Amendments to Arbitration Codes Proposed
On February 18th, the SEC provided notice of the Financial Industry Regulatory Authority’s filing of proposed amendment to Rules 12214 and 12601 of the Code of Arbitration Procedure for Customer Disputes and Rules 13214 and 13601 of the Code of Arbitration Procedure for Industry Disputes to require that parties give more advance notice before cancelling or postponing a hearing, or be assessed a higher late cancellation fee if such notice is not provided. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 23. SEC Release No. 3474289.
NASDAQ OMX Group
Proposed Disclosure Requirement Approved
On February 13th, the SEC approved The NASDAQ Stock Market’s proposed rule change to require companies to disclose the denial of an initial listing application. SEC Release No. 3474279.
National Futures Association
SD and MSP Annual Questionnaire and Business Continuity and Disaster Recovery Plan
On February 18th, the National Futures Association (“NFA”) reminded all members, including swap dealers (“SD”) and major swap participants (“MSP”), of the requirement to complete NFA’s Annual Questionnaire, which provides NFA with important information regarding a firm’s business activities. Beginning April 1, 2015, each SD and MSP will be required to complete the SDMSP Questionnaire as part of the firm’s annual membership renewal process. Under the CFTC’s business continuity and disaster recovery plan (“BCDR”) requirements, each SD and MSP is also required to provide the CFTC with contact information for two employees with the authority to make key decisions on behalf of the SD or MSP, with knowledge of the firm’s BCDR plan, and whom the CFTC can contact in the case of an emergency or other disruption. NFA Notice to Members I1510.
Disapproval Proceedings Instituted for Proposed Order Type Amendments
On February 18th, the SEC instituted proceedings to determine whether to approve or disapprove NYSE MKT’s proposed amendment of Exchange Rule 13Equities by regrouping and renumbering existing order types and order modifiers. The rule would be reorganized into six categories: (a) primary order types; (b) time in force modifiers; (c) auctiononly orders; (d) orders with instructions not to display all or a portion of the order; (e) orders with instructions not to route; and (f) additional orders and modifiers. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 23. SEC Release No. 3474298.
Midday Auction Proposed
On February 17th, the SEC provided notice of the New York Stock Exchange’s proposed adoption of new Rule 124 to conduct a daily singlepriced auction at a specified time in lowervolume securities (“Midday Auction”) and amend Rule 104 to codify the obligation of Designated Market Makers to facilitate the Midday Auction. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 23. SEC Release No. 3474281.
The Options Clearing Corporation
Proposed Changes to Overnight Clearance Operations Approved
On February 12th, the SEC approved The Options Clearing Corporation’s proposed change to its operations for the clearance of confirmed trades executed in overnight trading sessions offered by exchanges for which OCC provides clearance and settlement services. SEC Release No. 3474268.