Chicago Stock Exchange, Inc
Bylaws Rule Change Approved
On April 16th, the SEC published the order to approve a proposed rule change to amend the bylaws of the Chicago Stock Exchange relating to the nomination and election of the Vice Chairman. SEC Release 34-71954.
Financial Industry Regulatory Authority
FINRA to Discuss Broker Background Checks
On April 16th, FINRA posted its April 24th meeting agenda which will consider a proposed amendment to FINRA Rule 3110 (Supervision) regarding background investigations of applicants for registration.
SEC Approves FINRA Security Classification Rule
On April 10th, the SEC approved FINRA’s proposal to classify depositary shares, when not listed on an equity facility of a national securities exchange, as OTC Equity Securities under FINRA Rule 6420(f). SEC 34-71927.
Miami International Securities Exchange LLC
Modifications to Price Protection Provisions Approved
On April 17th, the SEC published the order to approve the Miami International Securities Exchange’s proposed amendments to Exchange Rules 515 and 529 to modify price protection provisions for the execution of orders to provide market participants additional flexibility to designate the level of price protections for their orders. SEC Release 34-71968.
NASDAQ Proposes Rule Change to Closing Cross
On April 17th, the SEC published the proposed rule change to amend Exchange Rule 4754 governing the NASDAQ Closing Cross (“Closing Cross”) to accommodate changes in market structure triggered by Phase 2 of the Plan to Address Extraordinary Market Volatility submitted to the Commission pursuant to Rule 608 of Regulation NMS (“LULD Plan”). Specifically, NASDAQ proposes to clarify the rule governing the operation of the Closing Cross in circumstances where a pause triggered under the LULD Plan would be triggered after 3:50 p.m. EST. Comments should be submitted on or before 21 days after publication in the Federal Register which is expected soon. SEC Release 34-71961.
Rule Change on Fee Schedule Submitted
On April 16th, SEC published NASDAQ OMX BX’s notice of filing of proposed rule to amend the fee schedule under Exchange Rule 7018(a) with respect to transactions in securities priced at $1 per share or more. The changes simplify various aspects of the BX fee schedule to encourage firms to make use of the favorable economics it offers. Comments should be made on or before 21 days from publication in the Federal Register which is expected soon. SEC Release 34-71956.
National Securities Clearing Corporation
NSCC Filed Advance Notice on VaR Modeling
On April 15th, the SEC published NSCC’s filing of an Advance Notice with a proposed adjustment to NSCC’s existing parametric Value- at-Risk (“VaR”) margining model. The proposal is expected to improve NSCC’s back-testing performance over shorter time horizons, particularly during more volatile market environments, and should enable the model to better account for the higher degree of fat-tail risk observed in equities markets. Comments should be submitted on or before 21 days from publication in the Federal Register which is expected soon. SEC Release 34-71945.
NYSE Rulebook Change Approved
On April 16th, the SEC published an order granting approval of proposed rule change amending Section 17, which are rules applicable to securities known as Fixed Return Options. SEC Release 34-71957.