BATS Exchange

Price Sliding Functionality Proposed

On August 28th, the SEC provided notice of BATS Exchange’s filing of a proposed amendment to add certain price sliding functionality to the Exchange’s cash equities trading platform. The Exchange also proposes to add similar functionality to BATS Options. Comments should be submitted on or before September 25, 2014. SEC Release No. 34-72945.

Price Sliding Functionality Proposed

On August 28th, the SEC provided notice of BATS Y-Exchange’s filing of proposed amendments to add certain optional price sliding functionality. Comments should be submitted on or before September 25, 2014. SEC Release No. 34-72946.


Chicago Board Options Exchange

Complex Order Amendment Approved

On September 4th, the SEC approved the Chicago Board Options Exchange’s proposal to require all complex orders with three or more legs to be subject to a complex order auction prior to entering the complex order book. SEC Release No. 34-72986.

Amendments to Complex Order Rules Proposed

On September 2nd, the SEC provided notice of the Chicago Board Options Exchange’s filing of proposed amendments to its rules related to complex orders to: (i) simplify the definitions of the complex order types that may be made available on a class-by-class basis and remove references to certain specific complex order types that will no longer be defined; (ii) with respect to complex orders in open outcry, set forth applicable ratios and order ticket requirements for an order to be eligible for complex order priority within applicable priority rules; and (iii) with respect to complex orders in open outcry, make explicit the priority applicable when there are other complex orders or quotes represented at the same net price, whether such other orders or quotes are in the complex order book or being represented in open outcry. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of September 8. SEC Release No. 34- 72957.


Chicago Mercantile Exchange

CDS Risk Model Framework Proposed

On September 2nd, the SEC provided notice of the Chicago Mercantile Exchange’s filing of a proposal to adopt a CME Credit Default Swap Risk Model Framework for broad-based index CDS. CME also proposes to make changes to the Manual of Operations for CME Cleared Credit Default Swaps in connection with the proposed CME CDS Risk Model Framework. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of September 8. SEC Release No. 34-72959.


EDGX Exchange

Proposed Mid-Point Discretionary Order Withdrawn

On September 2nd, the SEC provided notice of EDGX Exchange’s withdrawal of its proposed addition of a new order type called the Mid-Point Discretionary Order. SEC Release No. 34-72955.


Financial Industry Regulatory Authority

SEC Approves TRACE Amendments

On August 22nd, the Financial Industry Regulatory Authority announced that the SEC has approved amendments to the Trade Reporting and Compliance Engine rules and dissemination protocols to provide for dissemination of transactions in an additional group of asset-backed securities and to reduce the time frame for reporting such transactions, other than Fixed or List Price and Takedown Transactions. Transactions in asset-backed securities effected pursuant to Securities Act Rule 144A also will be disseminated. The amendments became effective on April 27, 2015. FINRA Regulatory Notice 14-34.


ICE Clear Credit

Internal Liquidity Proposal Approved

On August 28th, the SEC approved ICE Clear Credit’s proposed changes to its rulebook to clarify ICC’s authority to use, and to provide details as to how ICC would use, Guaranty Fund and House Initial Margin as an internal liquidity resource. SEC Release No. 34-72944.

Clearance of Additional Sovereign CDS Proposed

On August 28th, the SEC provided notice of ICE Clear Credit’s filing of a proposed rule change to adopt new rules that will provide the basis for ICC to clear additional credit default swap contracts. ICC is proposing to amend Chapter 26 of its rules to add Subchapter 26I and to amend the ICC Risk Management Framework to provide for the clearance of Standard Western European Sovereign CDS contracts, specifically the Republic of Ireland, the Italian Republic, the Portuguese Republic, and the Kingdom of Spain. Comments should be submitted on or before. SEC Release No. 34-72941.


International Capital Market Association

ICMA Issues New Sovereign Default Rules

On August 29th, the International Capital Market Association published revised collective action clauses and a new standard pari passu clause to facilitate future sovereign debt restructuring. The collective action clauses will allow a majority of bondholders to agree to changes in bond terms, for example to extend maturities or reduce principal, that are legally binding on all holders of the bond, including those who vote against the restructuring. The new pari passu provision details clearly the scope of its application, thereby reducing the risk of the pari passu clause being a basis for disrupting future sovereign debt restructurings and raising concerns with inter  creditor equity. ICMA Press Release.


Municipal Securities Rulemaking Board

MSRB’s Pay-to-Play Proposal

On September 5th, Insurance News Net discussed the Municipal Securities Rulemaking Board’s proposed extension of Rule G-37, which prohibits municipal securities dealers from making “pay-to-play” political contributions, to municipal advisors. Pay-to -Play.

Best Execution Rules Proposed

On September 2nd, the SEC provided notice of the Municipal Securities Rulemaking Board’s filing of a proposed Rule G-18, on best execution of transactions in municipal securities, and amendments to Rule G-48, on transactions with sophisticated municipal market professionals (“SMMP”), and Rule D-15, on the definition of SMMP. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of September 8. SEC Release No. 34-72956.


NASDAQ OMX Group

Longer Period Designated to Consider Managed ETF Proposal

On September 4th, the SEC designated November 7, 2014 as the date by which it will approve or disapprove the NASDAQ Stock Market’s proposed adoption of Nasdaq Rule 5745, which would govern the listing and trading of Exchange-Traded Managed Fund Shares. SEC Release No. 34-72987.

Amendment to IPO Trading Halt Procedure Proposed

On September 3rd, the SEC provided notice of NASDAQ Stock Market’s filing of a proposed amendment to NASDAQ Rule 4120(c) to modify the parameters for releasing securities for trading upon the termination of a trading halt in a security that is the subject of an initial public offering. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of September 8. SEC Release No. 34-72961.


National Futures Association

New Risk Exposure Report Requirements

On August 22nd, the National Futures Association advised of new risk exposure and reporting requirements for swap dealers and major swap participants. NFA Compliance Rule 2-49 requires swap dealers and major swap participants to submit to NFA upon request any reports, documents or notices, including those required by CFTC Regulation 3.3 or Part 23 of the CFTC regulations. NFA recently amended Compliance Rule 2-49 to specifically provide that NFA is authorized to require SDs and MSPs to submit identified reports or other documentation not only to NFA but also to the CFTC in the form and manner prescribed by NFA. NFA Notice to Members I-14-20.


New York Stock Exchange

Removal of Certain Order Types Approved

On August 28th, the SEC approved NYSE Arca’s proposed elimination of certain order types, modifiers and related references. SEC Release No. 34-72942.