Chicago Board Options Exchange

Amendment to Give Up of Clearing Trading Permit Holder Rule Approved

On July 24th, the SEC approved the Chicago Board Options Exchange’s proposed amendment of Rule 6.21 to provide that a Trading Permit Holder (“TPH”) that is not a market maker may only give up (i) a Clearing Trading Permit Holder that has previously been identified and processed by the Exchange as a “designated give up” for that TPH, or (ii) a guarantor of the TPH. SEC Release No. 34-72668.

Financial Industry Regulatory Authority

FINRA Rule Limiting Expungements is Approved

On July 22nd, the SEC approved the Financial Industry Regulatory Authority’s proposed adoption of Rule 2081, which prohibits member firms and associated persons from conditioning or seeking to condition settlement of a dispute with a customer on, or to otherwise compensate the customer for, the customer’s agreement to consent to, or not to oppose, the firm’s or associated person’s request to expunge the customer dispute information which was the subject of the settlement from the Central Registration Depository. The Commission additionally encourages FINRA to conduct a comprehensive review of its expungement rules and procedures to determine whether additional rulemaking is necessary or appropriate to assure that expungement is treated as an extraordinary remedy that is permitted only where the information to be expunged has no meaningful investor protection or regulatory value. SEC Release No. 34-72649. See also FINRA Press Release.


Modifications to Free Services Approved

On July 24th, the SEC approved The NASDAQ Stock Market’s proposed changes to IM-5900-7 to modify the free services offered to newly listed companies. SEC Release No. 34-72669.

Disapproval Proceedings Instituted for Data Feed Proposal

On July 22nd, the SEC instituted disapproval proceedings regarding The NASDAQ Stock Market’s proposed rule change would remove from its rules all provisions relating to the market data feeds that NASDAQ receives from other registered exchanges and other non-NASDAQ sources and then re-transmits to its co-located firms, including the provisions setting fees for providing this market data to its co-located firms. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of July 28. Rebuttal comments should be submitted within 35 days. SEC Release No. 34-72654.

National Securities Clearing Corporation

Mutual Fund Scorecard Feature Approved

On July 23rd, the SEC approved the National Securities Clearing Corporation’s proposed addition of a section to Rule 52.D of its Rules & Procedures to implement a new scorecard feature to its Mutual Fund Profile Service (“MFPS”). The purpose of the new scorecard feature is to encourage more reliable data in MFPS, which is a data repository that provides members with a way of transmitting and receiving information about funds and other pooled investment vehicles. SEC Release No. 34-72657.


SEC Suspends and Institutes Disapproval Proceedings Regarding Lead Market Maker Rights Fees Proposal

On July 18th, the SEC issued an order temporarily suspending and instituting proceedings to determine whether to approve or disapprove NYSE Arca’s proposed amendment to the NYSE Arca Options Fee Schedule relating to lead market maker rights fees. The proposal would provide a discount on lead market maker rights fees for certain lead market makers. Lead market makers to which the Exchange has allocated 400 or more issues would receive a 50 percent discount on total lead market maker rights fees from June 1, 2014 through December 31, 2014. SEC Release No. 34-72642.