SROs Study Cost of Implementing CAT
On June 23rd, the Intercontinental Exchange announced that the national securities exchanges FINRA are distributing a cost study questionnaire to gather information to assess and manage the financial impact of anticipated Consolidated Audit Trail reporting requirements on the broker-dealer community. Recipients are asked to return the completed questionnaire by August 6, 2014. ICE Press Release
Chicago Board Options Exchange
Amended Margin Rules for Volatility Index Options Approved
On June 25th, the SEC approved the Chicago Board Options Exchange’s proposed amendments to its rules for volatility index options. The proposal amends CBOE Rules 12.3 (Margin Requirements) and 12.4 (Portfolio Margin) to increase the minimum margin requirements for certain 30-day volatility index options and for options on the VXST Index. SEC Release No. 34-72468.
Financial Industry Regulatory Authority
FINRA Withdraws Proposed Bonus Disclosure Rule
On June 24th, FINRA withdrew from the SEC a proposed rule which would have required a broker to disclose to clients recruitment bonuses the broker received that were in excess of $100,000. SEC Release No. 34-72459.
FINRA Updates Broker-Dealer Rules
On June 23rd FINRA announced it is updating the imbedded text of Securities Exchange Act reporting rules for broker-dealers in the Interpretations of Financial and Operational Rules to reflect the effectiveness of amendments the SEC adopted. The updated imbedded text relates to Securities Exchange Act Rules 17a-5 and 17a-11. FINRA is also making available related updates of the Interpretations of Financial and Operational Rules that have been communicated to FINRA staff by the staff of the SEC’s Division of Trading and Markets. The updated interpretations relate to Securities Exchange Act Rule 17a-5. FINRA Regulatory Notice 14-25.
Supplemental Schedule Proposed
On June 20th, the SEC provided notice of FINRA’s filing of a proposal to adopt a supplemental schedule for inventory positions pursuant to FINRA Rule 4524 (Supplemental FOCUS Information). Comments should be submitted on or before July 17, 2014. SEC Release No. 34-72444.
International Securities Exchange
Disapproval Proceedings Instituted for Market Maker Mitigation Proposal
On June 24th, the SEC instituted proceedings to determine whether to approve or disapprove the International Securities Exchange’s proposed amendment of ISE Rules 722 and 804 to mitigate market maker risk by adopting an Exchange-provided risk management functionality. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of June 30. Rebuttal comments should be submitted within 35 days. SEC Release No. 34-72455.
NASDAQ OMX PHLX
Longer Period Designated for Proposed Amendments to Priority Rules
On June 23rd, the SEC designated August 11, 2014 as the date by which it will approve, disapprove, or institute disapproval proceedings regarding NASDAQ OMX PHLX’s proposed rule change to revise the priority afforded to in-crowd participants respecting crossing, facilitation, and solicited orders in open outcry trading. SEC Release No. 34-72447.
National Futures Association
Diminutive Notional Value Contracts
On June 25th, the National Futures Association (“NFA”) announced that effective July 31, 2014 NFA's Executive Committee will remove the diminutive notional value (“DNV”) designation from the vast majority of ICE Power Contracts that were previously designated as DNVs. Therefore, as of August 1, 2014, these ICE Power Contracts will no longer be considered qualified DNV contracts subject to the reduced assessment fee rate, and Member futures commission merchants should charge the full assessment fee rate of $.04 a round- turn to these contracts. NFA Notice I-14-16.
Changes to the CPO Form PQR and CTA Form PR
On June 23rd, the National Futures Association announced that updated CPO Form PQR and CTA Form PR that will become effective for the period ending June 30, 2014 will be available in the EasyFile system the first week of July 2014. NFA Notice I-14-15.
NFA Board Prohibits Use of Credit Cards to Fund Retail Forex Accounts
On June 23rd, the National Futures Association announced that its Board approved a ban on the use of credit cards to fund retail forex and futures accounts. The prohibition is subject to approval by the CFTC. NFA Press Release.