FINRA proposes CARDS. The Financial Industry Regulatory Authority requested comment on a proposed rule to implement the Comprehensive Automated Risk Data System (CARDS). CARDS would allow FINRA to identify and respond to high-risk areas and suspicious activities that it might not identify through its current surveillance and examination programs. Comments should be submitted by December 1, 2014. (9/30/2014) FINRA Regulatory Notice 14-37; FINRA press release.
Arbitration insurance. According to Reuters, the Financial Industry Regulatory Authority has decided that it will not require broker-dealers to carry insurance that would enable a firm to pay to a customer an arbitration award that exceeds the firm’s capital. (9/29/2014) Liability insurance.
FINRA individual snapshot reports. The Financial Industry Regulatory Authority announced the online availability of snapshot reports for individuals who are or have been registered as brokers or investment adviser representatives. (9/25/2014) FINRA Information Notice.
FINRA approves new HFT guidance. The Financial Industry Regulatory Authority announced that its Board of Governors approved a series of proposed rule changes regarding high-speed and algorithmic trading. Regulatory Notices will be issued regarding issues including the registration of associated persons involved in the preparation of algorithmic strategies; ATS transparency; the supervision of trading strategies; and fixed income pricing and quotation. (9/19/2014) FINRA press release.
NFA filing requirements. The National Futures Association announced that it will require future commission merchants for which the NFA is the DSRO to file with NFA the quarterly and annual risk exposure reports the FCM files with the CFTC. (9/17/2014) NFA Notice I-14-22.
NFA assessment fee reduction. The National Futures Association reminded members that effective October 1, 2014, NFA’s assessment fee will change to $.01 per side for futures and options contracts. The new rate is a 50 percent decrease from the current rate. (9/17/2014) NFA Notice I-14-21.
FINRA eliminates OTC Bulletin Board Historical Research Reports. The Financial Industry Regulatory Authority announced that it will no longer provide historical research reports for OTC Bulletin Board securities. FINRA Rule 7740, pursuant to which FINRA charges fees for such reports, will also be deleted. In addition, FINRA announced amendments to FINRA Rule 7710 relating to fees for the OTC Reporting Facility (ORF) trade reporting and data, upon migration of the ORF to FINRA’s Multi-Product Platform on November 17, 2014. (9/17/2014) FINRA Regulatory Notice 14-36.
FINRA proposes customer account statements rule. The Financial Industry Regulatory Authority requested comment on a revised proposal to transfer NASD Rule 2340 (Customer Account Statements) and Incorporated NYSE Rule 409 (Statements of Accounts of Customers) into the consolidated FINRA rulebook as FINRA Rule 2231 (Customer Account Statements). Comments should be submitted by October 31, 2014. (9/16/2014) FINRA Regulatory Notice 14-35.