Chicago Board Options Exchange
CBOE Short-Term Volatility Index Rule Approved.
On March 21st, the SEC approved CBO's proposed rule, filed on January 27th, to list and trade CBOE Short-Term Volatility Index (VXST) options which will expire every week. They will trade alongside existing CBOE Volatility Index (VIX) options which expire on a monthly basis. SEC Release 34-71764.
Financial Industry Regulatory Authority
FINRA Proposes Changes to Rules 2210 and 2214.
On March 25th, FINRA proposed a change to amend FINRA Rules 2210 (Communications with the Public) and 2214 (Requirements for the Use of Investment Analysis Tools). The amendment to 2210 would exclude research reports concerning only securities listed on a national securities exchange. FINRA Rule 2214 mistakenly cross-references FINRA Rule 2210(c)(3)(D). It should cross-reference 2210(c)(3)(C). FINRA proposed to correct this rule cross-reference. Comments should be submitted within 21 days after publication in the Federal Register which is expected soon. SEC Release 34-71792.
FINRA Files Proposed Rule Relating to Recruitment Practices.
On March 24th, SEC published FINRA filing of the proposed rule change to adopt FINRA Rule 2243 regarding FINRA member's recruitment practices of registered persons ("representatives"). There is an expectation that when representatives leave their current firm that many of the representative's former customers will transfer their assets to the new firm. The proposed rule would make more transparent the recruitment package received by the representative from the new firm in order for the customers to make a more informed decision about moving their assets from one firm to another. Comments should be submitted within 21 days after publication in the Federal Register which is expected soon. SEC Release 34-71786.
ICE Clear Credit
Update to Liquidity Thresholds Proposed.
On March 26th, ICE Clear Credit submitted a proposed rule to change the update Ice Clear Credit ("ICC") liquidity thresholds for Euro denominated products. The update would require that the first 65% of Non-Client Liquidity Requirements for Euro denominated products to be satisfied with Euro cash. Comments should be submitted within 21 days after publication in the Federal Register which is expected soon. SEC Release 34-71810.
ICE Clear Europe
New Permitted Cover Approved.
On March 25th, the SEC approved ICE Clear Europe's proposed rule changes, submitted on February 11th, to permit ICE Clear Europe Clearing Members to post additional categories of securities ("New Permitted Cover") as permitted cover to meet initial margin, original margin and certain other margin requirements, including delivery margin requirements. SEC Release 34-71791; SEC Release 34-71790.
SPDR Risk Aware Funds Approved for Trade.
On March 21st, the SEC granted approval of NYSE Arca proposed rule, filed on January 24th, to list and trade shares of the SPDR SSgA Risk Aware ETF; SPDR SSgA Large Cap Risk Aware ETF; and SPDR SSgA Small Cap Risk Aware ETF under NYSE Arca Equities Rule 8.600. The Shares will be offered by SSgA Active ETF Trust ("Trust"), which is organized as a Massachusetts business trust and is registered with the SEC as an open-end management investment company. The Funds will be actively managed and will not seek to replicate the performance of a specified index. SEC Release 34-71767.