NASDAQ Proposes “Kill Switch.” The NASDAQ Stock Market has filed for immediate effectiveness a proposal to add a risk management tool known as a “Kill Switch” that will enable NASDAQ market participants to: (1) establish a pre-determined risk exposure level, (2) receive notifications as the value of executed orders approaches that level, and (3) have order entry ports disabled and open orders cancelled when the value of executed orders exceeds the designated risk level. The feature will be optional and will be offered at no charge effective March 1, 2014. Comments should be submitted within 21 days from publication in the Federal Register, which is expected shortly. (2/18/2014) Kill Switch.
SEC approves FINRA ATS requirements. The Financial Industry Regulatory Authority announced that the SEC approved a rule change to require alternative trading systems (ATS) to: (i) report to FINRA weekly volume information and the number of securities transactions within the ATS by security; and (ii) acquire and use a single, unique market participant identifier when reporting information to FINRA. The ATS reporting requirement will be implemented beginning May 12, 2014. The first ATS reports for the week of May 12 through May 16, 2014, will then be due by May 28, 2014. Each ATS must begin reporting order and trade information to FINRA using a unique MPID by November 10, 2014. (2/14/2014) FINRA Regulatory Notice 14-07.
FINRA board adopts new expungement rule. The Financial Industry Regulatory Authority’s Board of Governors approved a rule proposal prohibiting firms and associated persons from conditioning settlements of customer disputes on, or compensating customers for, an agreement not to oppose a request to expunge information from an associated person’s Central Registration Depository record. (2/13/2014) FINRA press release.
Reporting requirements for forex members. New National Futures Association reporting requirements will go into effect on February 28, 2014. The new rules require FDMs to report certain specified information to NFA on a monthly or quarterly basis through the monthly and quarterly FOREX reports. (2/12/2014) NFA Notice to Members I-14-07.
Exempt CPO/CTA obligations. The National Futures Association discussed CFTC and NFA requirements for members who are exempt from CFTC registration. (2/12/2014) NFA Notice to Members I-14-06.
Updated FINRA financial responsibility and reporting rules. The Financial Industry Regulatory Authority announced updates to the imbedded text of the Securities Exchange Act financial responsibility and reporting rules. (2/7/2014) FINRA Regulatory Notice 14-06.