EDGX Proposes Creation of Retail Order Designation
On April 24th, the SEC provided notice of EDGX Exchange’s filing of a proposed rule that would permit members to designate that their Retail Orders be identified as Retail on the EDGX Book Feed. Comments should be submitted on or before May 21, 2014. SEC Release No. 34-72016.
Financial Industry Regulatory Authority
Proposed Wash Sales Requirement Approved
On May 1st, the SEC approved the Financial Industry Regulatory Authority’s (“FINRA”) proposed addition of Supplementary Material .02 to FINRA Rule 5210 (Publication of Transactions and Quotations) to emphasize that wash sale transactions are generally non-bona fide transactions and that members have an obligation to have policies and procedures in place to review their trading activity for, and prevent, wash sale transactions. SEC Release No. 34-72067.
FINRA Revises BrokerCheck Hyperlink Proposal
On April 30th, FINRA requested comment on a revised proposal to require a hyperlink to BrokerCheck in firms’ online retail communications with the public. The revised proposal would require a firm to include a readily apparent reference and hyperlink to BrokerCheck on each website of the firm that is available to retail investors. In addition, it would require a firm to include a readily apparent reference and hyperlink to BrokerCheck in online retail communications with the public that include a professional profile of, or contact information for, an associated person. Comments should be submitted on or before June 16, 2014. FINRA Regulatory Notice 14-19.
FINRA Revises Series 26 Exam Program
On April 30th, FINRA announced it has revised the Investment Company and Variable Contracts Products Principal (Series 26) examination program. The changes will appear in Series 26 examinations administered on or after June 16, 2014. FINRA Regulatory Notice 14-18.
Proposed Amendments to Corporate Financing Rules Approved
On April 28th, the SEC approved FINRA’s proposed amendment of FINRA Rules 5110 (Corporate Financing Rule – Underwriting Terms and Arrangements) and 5121 (Public Offerings of Securities with Conflicts of Interest) to simplify and refine the scope of the rules. SEC Release No. 34-72033.
Bond Trading Proposals Approved
On April 25th, the SEC approved the New York Stock Exchange’s proposed rule changes to provide for a bond trading license for member organizations that desire to trade only debt securities on the Exchange and to establish a new class of market participants called bond liquidity providers. SEC Release No. 34-72026.