NYSE eliminates floor registration categories on NYSE American. The New York Stock Exchange LLC notified members that it will eliminate certain floor registration categories on NYSE American, since these categories are no longer required because NYSE American operates on a fully electronic basis. (8/22/2017) NYSE information memo.
MSRB receives SEC approval to amend municipal fund security advertising rules. The Municipal Securities Rulemaking Board announced that it has received approval from the SEC to amend its rules on municipal fund security product advertisements to reflect relevant regulatory developments; enhance the “out-of-state disclosure obligation” about the potential benefits of investing in a 529 college savings plan in the home state of the investor or of the designated beneficiary; clarify that certain advertisements may include a hyperlink to a website that contains more recent performance data; and include several revisions designed to promote understanding of and compliance with the rule. The rule amendments will become effective on November 18, 2017. (8/21/2017) MSRB approval notice.
FINRA to hold election to fill NAC vacancies. The Financial Industry Regulatory Authority announced the nomination process to fill one large firm vacancy and one small firm vacancy on the National Adjudicatory Council. Eligible individuals who have not been nominated for election to the NAC by the Nominating Committee should submit their petitions for candidacy on or before October 5, 2017. (8/21/2017) FINRA election notice.
FINRA’s expedited arbitrator list selection amendments will become effective in September. FINRA published a notice containing additional information about recently approved amendments to FINRA customer and industry arbitration rules intended to expedite the arbitrator list selection process. The rule amendments will be effective for cases filed after September 18, 2017. (8/18/2017) FINRA regulatory notice.
Firm, CEO, and representative settle allegations of selling inflated stock shares. FINRA announced that it has reached a settlement with a broker-dealer, the firm’s CEO, and a firm representative in connection with allegations that they engaged in a scheme to sell shares of stock to customers at fraudulently inflated prices. FINRA alleged that the firm, the CEO, and the representative used an outside brokerage firm, manipulative trading, and misleading trade confirmations to sell nearly 40,000 shares of stock that the firm owned to 14 customers at fraudulently inflated prices. Without admitting or denying the allegations, the firm agreed to be expelled from FINRA membership, the CEO agreed to a permanent bar, and the representative agreed to a two-year suspension and the payment of over US$18,000 in restitution to affected customers. (8/14/2017) FINRA press release.
SEC stays approval of proposed acquisition of CHX. The SEC stayed an orderissued by the Division of Trading and Markets approving the Chicago Stock Exchange Inc.’s proposed rule change in connection with the acquisition of CHX by North America Casin Holdings Inc., pending review by the Commission. (8/9/2017) SEC letter.