NFA assessment fee reduction. The National Futures Association announced that its assessment fee will be $0.01 per side for futures and options contracts beginning on October 1, 2014. NFA Notice to Members I-14-18.
FINRA Form 211 proposal. The Financial Industry Regulatory Authority published a proposal that would make publicly available Form 211, which firms must file to demonstrate compliance with Rule 15c2-11 of the Securities Exchange Act prior to initiating a quotation in a non-exchange-listed security. Comments should be submitted by September 2, 2014. (7/2/2014) FINRA Regulatory Notice 14-29.
NFA Guidance on chief compliance officers. Guidance on the steps that swap dealers and major swap participants must take upon the departure of their chief compliance officer has been issued by the National Futures Association. (7/1/2014) NFA Notice to Members I-14-17.
Rule 144A trades. The Financial Industry Regulatory Authority has begun public dissemination of Rule 144A transaction data in corporate debt securities. (6/30/2014) FINRA press release.
Self-trades. The SEC has approved new supplementary material to Financial Industry Regulatory Authority Rule 5210 (Publication of Transactions and Quotations), which addresses transactions in a security resulting from the unintentional interaction of orders originating from the same firm that involve no change in the beneficial ownership of the security (self-trades). Beginning August 25, 2014, firms must have policies and procedures which are reasonably designed to review and prevent self-trades. (6/30/2014) FINRA Regulatory Notice 14-28.
Arbitration procedure amendments. The SEC has approved amendments to the Financial Industry Regulatory Authority’s Customer and Industry Codes of Arbitration Procedure that require redaction of Social Security numbers, taxpayer identification numbers and financial account numbers from documents filed in a FINRA arbitration. The amendments are effective July 28, 2014. (6/30/2014) FINRA Regulatory Notice 14-27.
Market making certification. Financial Industry Regulatory Authority members are reminded of the prohibition in FINRA Rule 5250 (Payments for Market Making) on accepting payments for market making, including payments for filing a Form 211 in accordance with FINRA Rule 6432. In addition, effective July 7, 2014, firms must certify that neither the firm nor its associated persons have accepted or will accept any payment or other consideration prohibited by Rule 5250. (6/27/2014) FINRA Regulatory Notice 14-26.
Bonus disclosure proposal withdrawn. The Financial Industry Regulatory Authority has withdrawn a proposed rule that would have required a broker to disclose recruitment bonuses in excess of US$100,000. (6/24/2014) SEC Release No. 34-72459.
Cost of implementing a consolidated audit trail studied. The national securities exchanges and the Financial Industry Regulatory Authority are distributing a cost study questionnaire to assess the impact of a consolidated audit trail on broker-dealers. The questionnaire should be completed by August 6, 2014. (6/23/2014) ICE press release.
Broker-dealer rules updated. The Financial Industry Regulatory Authority is updating the imbedded text of Securities Exchange Act reporting rules for broker-dealers to reflect SEC amendments. The updated text concerns Securities Exchange Act Rules 17a-5 and 17a-11. FINRA also updated Interpretations of Financial and Operational Rules made by the SEC’s Division of Trading and Markets. The updated interpretations concern Securities Exchange Act Rule 17a-5. (6/23/2014) FINRA Regulatory Notice 14-25.