Chicago Mercantile Exchange
CME Proposes Late Filing Fee.
On March 13th, the SEC provided notice of the Chicago Mercantile Exchange's filing of proposed amendments to CME Rule 980 that would add a new paragraph F. The new provision would provide for administrative fees to be imposed for late submissions of reports and other financial information to CME's Financial and Regulatory Surveillance Department ("FRSD"). Under the proposed changes, CME's FRSD would be able to assess clearing members a $1,000 administrative fee for each required submission that is not received by the due date and time. The proposed rule language would also allow the FRSD to, in its discretion, waive assessment of the administrative fee for good cause shown. Comments should be submitted on or before April 9, 2014. SEC Release No. 34-71719.
EDGX Exchange, Inc.
New Order Type Proposed.
On March 19th, EDGX Exchange, Inc. proposed a rule change to adopt a new order type. The proposed Mid-Point Discretionary Order is designed to increase displayed liquidity on the Exchange while also providing members the opportunity to achieve price improvement by enabling the order to execute at prices up to and including the mid-point of the National Best Bid or Offer. Comments should be submitted within 21 days after publication in the Federal Register, which is expected shortly. SEC Release No. 34-71747.
Financial Industry Regulatory Authority
SEC Approves FINRA Supervision Rules.
On March 19th, the Financial Industry Regulatory Authority announced SEC approval of FINRA's new consolidated rules governing supervision. New Rules 3110, 3120, 3150 and 3170 replace NASD Rules 3010, 3012 and 3110(i) and other corresponding NYSE rule provisions. The new rules become effective on December 1, 2014. FINRA Regulatory Notice 14-10.
International Securities Exchange
ISE and ISE Gemini Offer Enhanced Risk Management for Market Makers.
On March 20th, International Securities Exchange, LLC ("ISE") and ISE Gemini filed a proposed rule change with the SEC that would enhance its risk management offering for market maker quotes by removing all quotes in all classes after a market maker's pre-set curtailment events has occurred across both exchanges. The proposed rule change is meant to protect market makers from inadvertent exposure to excessive risk when trading on both ISE and ISE Gemini. Comments should be submitted within 21 days after publication in the Federal Register, which is expected shortly. SEC Release No. 34-71759; SEC Release No. 34-71758.
Longer Period Designated to Consider Change in Open Outcry Priority.
On March 18th, the SEC designated May 2, 2014 as the date by which it will approve, disapprove or institute disapproval proceedings regarding NYSE Arca's proposal to revise the order of priority of bids and offers when executing orders in open outcry. SEC Release No. 34-71733.