Chicago Board Options Exchange
Complex Order Ticket Requirements Proposed
On January 29th, the SEC provided notice of the Chicago Board Options Exchange (“CBOE”)’s filing of a proposal that would set forth order ticket requirements applicable to complex orders in open outcry pursuant to CBOE Rule 6.53, as well as SPX Combo Orders pursuant to CBOE Rule 24.20. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 2nd. SEC Release No. 3474169.
Fixed Income Clearing Corporation
Change in Novation Time Approved
On January 26th, the SEC approved the Fixed Income Clearing Corporation (“FFIEC”)’s proposal to move the time of novation applicable to certain transactions submitted to FICC’s Government Securities Division and FICC’s Mortgage Backed Securities Division to earlier in the clearing process in order to provide members with additional legal certainty. SEC Release No. 3474132.
Intercontinental Exchange Inc.
CrossCurrency Haircuts Proposal Receives Accelerated Approval
On January 26th, the SEC granted accelerated approval to Intercontinental Exchange Inc (“ICE”) Clear Europe’s proposed rule change to modify the crosscurrency haircuts applied by ICE Clear Europe to Permitted Cover provided by Clearing Members in order to address recent volatility in Swiss franc exchange rates. SEC Release No. 3474133.
International Securities Exchange
Longer Period Designated for Consideration of Proposed Opening Procedures
On January 23rd, the SEC designated March 10th, 2015 as the date by which it will approve, disapprove, or institute disapproval proceedings regarding the International Securities Exchange’s proposed modification of the manner in which the Exchange’s trading system opens trading at the beginning of the day and after trading halts and proposed codification of certain existing functionality within the trading system regarding opening and reopening of options classes traded on the International Securities Exchange. SEC Release No. 3474126.
International Swaps and Derivatives Association
ISDA Position Paper on CCP Recovery
On January 26th, the International Swaps and Derivatives Association published a position paper proposing a recovery and continuity framework for central counterparties. ISDA Press Release.
Miami International Securities Exchange
Options Listing Proposed
On January 26th, the SEC provided notice of the Miami International Securities Exchange (“MIAX”)’s filing of a proposed amendment to MIAX Rule 402 to allow the listing of options overlying ExchangeTraded Fund Shares that are listed pursuant to generic listing standards on equities exchanges for series of portfolio depositary receipts and index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. Comments should be submitted on or before February 20th, 2015. SEC Release No. 3474131.
Municipal Securities Rulemaking Board
MSRB Calls for Debt Disclosure.
On January 29th, the Municipal Securities Rulemaking Board (the “MSRB”) called for more transparency of the undisclosed debt of municipal bond issuers. The MSRB is concerned that investors are often unaware of the potential impact of bank loans and other debtlike obligations on the seniority status of existing bondholders and the credit or liquidity profile of an issuer. The MSRB’s market advisory highlights the importance of bank loan disclosure and provides best practices to support voluntary disclosure of bank loan information through the Electronic Municipal Market Access website. MSRB Press Release.
NASDAQ OMX Group
Disapproval Proceedings Instituted for Proposed Electronic Solicitation Mechanism
On January 28th, the SEC instituted proceedings to determine whether to approve or disapprove NASDAQ OMX PHLX (“PHLX”)’s proposed adoption of new PHLX Rule 1081, Solicitation Mechanism, to introduce a new electronic solicitation mechanism pursuant to which a member can electronically submit allornone orders of 500 contracts or more (or, in the case of minioptions, 5000 contracts or more) that the member represents as agent against contraorders that the member solicited. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 2nd, 2015. Rebuttal comments should be submitted within 35 days after publication. SEC Release No. 3474167.
Directed Market Maker Proposal Approved
On January 23rd, the SEC approved NASDAQ OMX BX (“BX”)’s proposed establishment of a program that permits BX Market Makers to act as Directed Market Makers in their appointed options classes, provided the BX Market Maker meets certain obligations and quoting requirements. SEC Release No. 3474129.
National Futures Association
Annual CCO Reports of Futures Commission Merchants
On January 26th, the National Futures Association (“NFA”) reminded futures commission merchants (“FCMs”) of CFTC rules that require any FCM with a fiscal year ending on or before January 31st, 2015 to file this year’s Chief Compliance Officer annual report within 90 days of the firm’s fiscal year end. NFA Notice to Members I15 07.
Increases in Forex Minimum Security Deposits
On January 23rd, the NFA announced that effective January 26th, 2015, the minimum security deposits required to be collected and maintained by Forex Dealer Members for the Japanese yen, Australian dollar, Russian ruble, Brazilian real, and the Mexican peso have been increased. NFA Notice to Members I1507.
Amendment to Listing Rules Proposed
On January 29th, the SEC provided notice of NYSE Arca’s filing of a proposed amendment to NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 relating to listing of Investment Company Units based on municipal bond indexes. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 2nd, 2015. SEC Release No. 3474175.
The Options Clearing Corporation
Plan for Raising Additional Capital Proposed
On January 26th, the SEC provided notice of The Options Clearing Corporation’s filing of a proposed Capital Plan for raising additional capital that would support Options Clearing Corporation’s function as a systemically important financial market utility and facilitate Options Clearing Corporation’s compliance with new regulatory requirements applicable to such entities that have been proposed by the SEC but have not yet been adopted. Comments should be submitted on or before February 20th, 2015. SEC Release No. 3474136.