Financial Industry Regulatory Authority
FINRA Board to Consider Two Customer-Related Proposals.
On February 5th, Reuters reported that on February 13, 2014, the Financial Industry Regulatory Authority Board will consider a rule that would require brokers to feature on their websites links to FINRA's BrokerCheck program. The Board will also consider a proposal that would prohibit brokers from including in customer settlements a requirement that the customer agree to the expungement of the customer's complaint from the broker's record. Board Vote.
ADF Amendments Approved.
On February 3rd, the SEC approved the Financial Industry Regulatory Authority's proposed amendments to the rules governing the Alternative Display Facility ("ADF") to reflect new regulatory requirements; address changes to the ADF's functionality resulting from FINRA's proposed migration of the ADF to the Multi-Product Platform; conform the ADF trade reporting rules, to the extent practicable, to current FINRA rules relating to trade reporting to the FINRA Trade Reporting Facilities; and make other non-substantive changes. SEC Release No. 34-71467.
New FINRA Financial and Operational Rules.
On February 3rd, the Financial Industry Regulatory Authority announced SEC approval of FINRA's proposal to adopt additional financial and operational rules. New FINRA Rules 4314, 4330, and 4340 address securities loans and borrowings, permissible use of customers' securities, and callable securities. The new rules are effective May 1, 2014. FINRA Regulatory Notice 14-05.
Fixed Income Clearing Corporation
Advanced Notice of Change to Intraday Clearing Fund Calculation.
On February 4th, the SEC provided notice of the Fixed Income Clearing Corporation's filing of an advance notice in connection with FICC's Government Securities Division's ("GSD") plans to incorporate GCF Repo positions in its intraday participant Clearing Fund requirement calculation, and its hourly internal surveillance cycles. The enhancement is intended to align GSD's risk management calculations and monitoring with the changes that have been implemented to the tri-party infrastructure by the Tri-Party Reform Task Force. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 10. SEC Release No. 34-71469.
International Swaps and Derivatives Association
Credit Derivative Definitions.
On February 3rd, the International Swaps and Derivatives Association announced that the 2014 ISDA Credit Derivatives Definitions will go live on September 2014. ISDA Press Release.
NASDAQ OMX Group
On February 5th, Bloomberg summarized its interview with NASDAQ OMX Group CEO Robert Greifeld. Greifeld believes that the SEC will approve NASDAQ's proposal for "Nasdaq Private Market." Private Expectations.
National Securities Clearing Corporation
Stock Borrow Program Discontinued.
On January 31st, the SEC approved the National Securities Clearing Corporation's proposed discontinuance of its stock borrow program. SEC Release No. 34-71455.