Amendments to Opening Process Approved.
On March 5th, the SEC approved BATS Exchange's proposed amendments to allow the Exchange's equity options trading platform ("BATS Options") to accept orders and quotes in all options series, other than index options, prior to the first transaction in the underlying security on the primary listing market and during a halt, as well as to establish a process for matching such orders immediately prior to the opening of trading in such options series. SEC Release No. 34-71651.
Chicago Board Options Exchange
CBOE Amends Supervisory Requirements.
On March 5th, Bloomberg reported the Chicago Board Options Exchange will require members to adopt and maintain written supervisory procedures. The move follows the CBOE's payment of a $6 million SEC fine for allegedly interfering in a SEC investigation into illegal short selling by a member firm. Supervision. See alsoSEC Release No. 34-71644 (SEC order approving CBOE proposal).
Complex Order Amendments Proposed.
On March 5th, the SEC provided notice of the Chicago Board Options Exchange's filing of proposed amendments to its rules related to complex orders. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of March 10. SEC Release No. 34-71648.
Financial Industry Regulatory Authority
On March 6th, Investment News reviewed the Public Investors Arbitration Bar Association's claim that the Financial Industry Regulatory Authority's BrokerCheck database "sanitizes" brokers' records and summarized FINRA's response. BrokerCheck Critics.
Longer Period Designated to Consider Corporate Financing Amendments.
On March 4th, the SEC designated April 28, 2014 as the date by which it will approve, disapprove, or institute disapproval proceedings regarding the Financial Industry Regulatory Authority's proposal to simplify and refine the scope of its corporate financing rules. SEC Release No. 34-71642.
Longer Period Designated to Consider Wash Sales Proposal.
On February 28th, the SEC designated May 2, 2014 as the date by which it will approve, disapprove, or institute disapproval proceedings regarding the Financial Industry Regulatory Authority's proposed rule change to add Supplementary Material .02 to FINRA Rule 5210 (Publication of Transactions and Quotations) to emphasize that wash sale transactions are generally non-bona fide transactions and that members have an obligation to have policies and procedures in place to review their trading activity for, and prevent, wash sale transactions. SEC Release No. 34-71636.
Amendments to Form BR Approved.
On February 27th, the SEC approved the Financial Industry Regulatory Authority's proposed amendments to the Uniform Branch Office Registration Form (Form BR). The amendments eliminate Section 6 (NYSE Branch Information), which is currently applicable only to NYSE-registered firms; add questions relating to space sharing arrangements and the location of books and records that are currently only in Section 6 and make them applicable to all members; modify existing questions and instructions to provide more detailed selections for describing the types of activities conducted at the branch office; add an optional question to identify a branch office as an "Office of Municipal Supervisory Jurisdiction," as defined under the rules of the Municipal Securities Rulemaking Board; and make other technical changes. SEC Release No. 34-71626.
Miami International Securities Exchange
Modifications to Price Protection Provisions Proposed.
On February 28th, the SEC provided notice of the Miami International Securities Exchange's filing of 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. The Exchange proposes to: amend Rule 515(c) to establish a new price protection for market participants; amend Rule 529 to allow for immediate routing in an additional situation; and make corresponding technical changes including deleting the language in current Rule 515(c). Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of March 10. SEC Release No. 34-71634.
National Securities Clearing Corporation
Use of DTCC Limit Monitoring Approved.
On February 28th, the SEC approved the National Securities Clearing Corporation's proposed implementation of DTCC Limit Monitoring to allow members to monitor the intraday, post-trade clearing activity of their own trading desks, their correspondent's, and their clients. SEC Release No. 34-71637.
Electronic Price Improvement Plan Proposed.
On March 5th, the SEC provided notice of NYSE MKT's filing of proposed new Rule 971.1NY that would set forth an electronic crossing mechanism with a price improvement auction on the Exchange to be referred to as the CUBE Auction (Customer Best Execution). The CUBE Auction, as proposed, would operate in a manner consistent with, but not identical to, the operation of electronic price improvement auctions available on other options markets. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of March 10. SEC Release No. 34-71655.