BATS Proposes Changes to Market Opening Procedures
On September 24th, the SEC provided notice of BATS Exchange Inc.’s proposal to amend Rule 21.7, “Market Opening Procedures” in order to modify the process by which the equity options trading platform opens trading at the beginning of the day and after trading halts. Comments should be submitted on or before 21 days from publication in the Federal Register, which is expected shortly. SEC Release 34-73203.
Longer Period for Spruce ETF Trust Proposal
On September 24th, the SEC extended the period until November 11th for SEC action on proposed rule change to adopt Rule 14.11(k) to permit BATS Exchange, Inc. to list managed portfolio shares and to list and trade shares of certain funds of the Spruce ETF Trust. SEC Release 34-73199.
Financial Industry Regulatory Authority
FINRA’s Board Approves High-Frequency Trading and Equity-Market Transparency Initiatives
On September 19th, the Financial Industry Regulatory Authority (FINRA) Board approved a series of proposed rule changes and authorized the issuance of a series of Regulatory Notices regarding high-speed and algorithmic trading. The Board also approved initiatives to enhance transparency and execution quality in fixed income markets. Board. Reuters reported on the new rules that would require the people on Wall Street who develop computer algorithms to register with regulators. The plans would force alternative trading platforms to report more data to FINRA about buy and sell orders as well as additional volume data for certain off-exchange trades. Reuters.
Accelerated Approval for FINRA FOCUS Report Rule
On September 23rd, the SEC provided notice of order granting accelerated approval of a proposed rule change, as modified by amendment No. 1, to adopt a supplementary schedule for inventory positions pursuant to FINRA Rule 4524 (Supplemental FOCUS Information). FINRA is proposing the adoption of a supplemental schedule to the FOCUS Report Part II, FOCUS Report Part IIA and the FOGS Report Part I that would provide more detailed information about inventory positions held by firms. The proposed Supplemental Inventory Schedule (“SIS”) would be due 20 business days after the end of a firm’s FOCUS or FOGS reporting period. Comments should be submitted on or before 21 days from publication in the Federal Register which is expected shortly. SEC Release 34-73192.
ICE Clear Europe Rule Change Approved
On September 19th, the SEC approved the proposed rule change and issued an order granting accelerated approval to Amendment 1, relating to the 2014 ISDA Credit Derivatives Definitions. The amendment addresses the necessary change in timing of the clearing of transactions incorporating timing of the clearing of transactions incorporating-wide ISDA protocol. SEC Release 34-73156.
International Securities Exchange
ISE Market Maker Risk Parameters Rule Approved
On September 19th, the SEC approved rule changes to amend ISE Rule 722 and ISE Rule 804 to enhance its risk management offering for market maker quotes. The SEC believes that the proposal could assist ISE market makers manage and reduce inadvertent exposure to excessive risk across both ISE and ISE Gemini. SEC Release 74-73147. SEC Release 34-73148.
NASDAQ OMX Group
NASDAQ SROs Propose Changes to Bylaws
On September 23rd, the SEC provided notice of NASDAQ Stock Market LLC (SEC Release 34-73193) and NASDAQ OMX PHLX LLC’s (SEC Release 34-73194) filing of proposed rule changes to amend the Certificate of Incorporation and Bylaws of The NASDAQ OMX Group, Inc. Prior to that on September 19th, the SEC provided notice of Boston Stock Exchange Clearing Corporation’s (BSECC) (SEC Release 34-73144).and the Stock Clearing Corporation of Philadelphia’s (SCCP) (SEC Release 34-73145) filing of the proposed rule changes. The proviso relates to the 5% voting limit exemption and would ensure consistency between the Charter and the Bylaws. The amendments would apply to all self-regulatory subsidiaries, both current and future. Comments should be submitted on or before 21 days from publication in the Federal Register, which is expected shortly.
NASDAQ Receives Contract to Administer Data System
On September 23rd, Reuters reported that NASDAQ was awarded the contract to administer the data system behind the three-hour trading halt in August 2013. It is also still in the running for the Securities Information Processor (SIP) Administrator contract which is scheduled to be announced next week. Contract.
PHLX Proposes to Add New Complex Order Process
On September 19th, the SEC provided notice of NASDAQ OMX PHLX LLC’s proposed rule change to add a new Complex Order process called “Legging Orders.” The process would implement functionality to provide additional liquidity for Complex Orders resting on top of the Complex Order Book at a price which improves the cPBBO. Legging Orders are designed to increase the opportunity for Complex Orders to “leg” into the market. The Exchange believes Legging Orders will increase opportunities for execution of Complex Orders, potentially increase executions of interest on the regular order book, and lead to tighter spreads and finer pricing on Phlx, which will benefit investors. Comments should be submitted on or before 21 days from publication in the Federal Register, which is expected shortly. SEC Release 34-73152.
NASDAQ Proposes to List Validea Market Legends ETF Shares
On September 22nd, the SEC published NASDAQ Stock Market LLC’s proposed rule change to list and trade the shares of the Validea Market Legends ETF. Comments should be submitted on or before 21 days from publication in the Federal Register which is expected shortly. SEC Release 34-73178.
NYSE Proposes to List and Trade Shares of Greenhaven Coal Fund
On September 19th, the SEC provided notice of the New York Stock Exchange (NYSE) Arca, Inc.’s proposed rule change as modified by Amendment 1 to list and trade shares of the Greenhaven Coal Fund under NYSE Arca Equities Rule 8.200, Commentary .02. Comments should be submitted on or before 21 days from publication in the Federal Register which is expected shortly. SEC Release 34-73149.
OneChicago Proposes to Update Rulebook
On September 23rd, the SEC published OCX (OneChicago LLC)’s proposed rule change to update its rulebook to remove references to the OCX.BETS and CBOEdirect trading platforms, replacing the references with OneChicago System. OCX is replacing OCX.BETS beginning on September 22nd and CBOEdirect in early 2015 with ECXdeltal. Comments should be submitted on or before 21 days from publication in the Federal Register, which is expected shortly. SEC Release 34-73191.