ISDA announces resolution stay protocol. The International Swaps and Derivatives Association announced that 18 major global banks have agreed to sign a new ISDA Resolution Stay Protocol, which has been developed in coordination with the Financial Stability Board, to support cross-border resolution and reduce systemic risk. The Protocol will impose a stay on cross-default and early termination rights within standard ISDA derivatives contracts between these firms in the event one of them is subject to resolution action. The stay is intended to give regulators time to facilitate an orderly resolution of a troubled bank. (10/11/2014)ISDA press release.
Firm Element Advisory update. The Securities Industry/Regulatory Council on Continuing Education released the semi-annual Firm Element Advisory (FEA). The Council suggests that firms consult the FEA when developing their Firm Element training needs analysis. (10/10/2014) FINRA Information Notice.
Confidentiality provisions in FINRA arbitration settlement agreements. The Financial Industry Regulatory Authority issued a reminder to firms that it is a violation of FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) to include confidentiality provisions in settlement agreements, or any other documents, that prohibit or restrict persons from communicating with regulatory authorities regarding a possible securities law violation. (10/9/2014) FINRA Regulatory Notice 14-40.
Compliance template for Exchange Act Rule 17a-5(f)(2). The Financial Industry Regulatory Authority has made available a new template and guidance for members electronically filing the statement required by Securities Exchange Act Rule 17a-5(f)(2) regarding the identification of a broker-dealer’s independent public accountant. (10/8/2014) FINRA Regulatory Notice 14-39.
Updated Financial and Operational Rule interpretations. The Financial Industry Regulatory Authority updated the imbedded text of Securities Exchange Act financial responsibility rules in the Interpretations of Financial and Operational Rules. The updates reflect SEC amendments to Rules 15c3-1, 15c3-1a, 15c3-1e, 15c3-1f, 15c3-1g, 15c3-3a and 17a-4. Updated SEC staff interpretations relating to Rule 15c3-1 are also available. (10/6/2014) FINRA Regulatory Notice 14-38.
NYSE regulatory functions. NYSE Regulation will assume the market surveillance, investigation and enforcement functions for NYSE Group’s equities and options exchanges upon the expiration of NYSE Group’s contract with the Financial Industry Regulation Authority on December 31, 2015. (10/6/2014) NYSE Group press release.
CPO reporting. The National Futures Association announced minor changes to the CPO Form PQR. The changes, which became effective for the quarter ending September 30, 2014, are available in the EasyFile system. An updated PQR template with expanded help text is also available. (10/1/2014) NFA Notice I-14-26.
Financial requirements monitoring for FDMs. The National Futures Association issued a reminder regarding NFA Financial Requirements Section 14, which requires FDMs to calculate daily the amount owed to customers for forex transactions, and to hold assets equal to or in excess of that amount in a qualifying institution. NFA Financial Requirements Section 14 has been amended to require FDMs to instruct any forex funds depository holding these funds to report the balances in these accounts on a daily basis to the NFA or its designee. (9/30/2014)NFA Notice I-14-25.