SEC approves arbitration code amendments. The SEC approved the Financial Industry Regulatory Authority’s amendments to the definition of public arbitrator in the Customer and Industry Codes of Arbitration Procedure. The amended definition excludes persons associated with a mutual fund or hedge fund from serving as public arbitrators and requires individuals to wait for two years after ending certain affiliations before FINRA may permit them to serve as public arbitrators. The amendments are effective on July 1, 2013, and apply to all cases in which FINRA has not sent to the parties lists of chair-qualified public arbitrators and public arbitrators for arbitrator selection. (6/3/2013) FINRA Regulatory Notice 13-21.
Account Type Indicators. NYSE Regulation advised that the elimination of certain obsolete equities Account Type Indicators has been extended to September 3, 2013. (5/31/2013) NYSE Regulation 13-10.
Electronic Blue Sheet extension. The Intermarket Surveillance Group has extended the effective dates for compliance with certain new data elements for Electronic Blue Sheets to November 1, 2013, to correspond to the recent extension by the SEC for compliance with certain broker-dealer recordkeeping and reporting requirements of Securities Exchange Act Rule13h-1. (5/31/2013) NYSE Regulation Information Memo 13-9.
Volatility curbs. Reuters reported that NYSE Regulation has asked the SEC for permission to reimpose volatility rules to address recent trading volatility in several stocks. (5/31/2013) Volatility curbs.
NFA financial requirements. Effective July 1, 2013, the requirements of the National Futures Association Financial Requirements Section 16, and the related interpretive notice entitled “NFA Financial Requirements Section 16: FCM Financial Practices and Excess Segregated Funds/Secure Amount/Cleared Swaps Customer Collateral Disbursements,” will apply to futures commission merchants holding cleared swaps customer collateral. (5/30/2013) NFA Notice I-13-14.
FINRA position limits calculation. Effective June 27, 2013, Financial Industry Regulatory Authority members may use the NASDAQ Global Large Mid Cap Index for volume and float criteria needed to calculate position limits for conventional equity options on securities in that index. (5/28/2013) FINRA Regulatory Notice 13-20.
NYSE adopts FINRA investigation and disciplinary rules. The New York Stock Exchange has adopted a new set of rules governing investigations, discipline of member organizations and covered persons, sanctions, cease and desist authority, and other procedural rules that are modeled on the rules of the Financial Industry Regulatory Authority. The new rules are effective on July 1, 2013. (5/24/2013) NYSE Information Memo 13-8.
FINRA trade reporting amendments approved. The Financial Industry Regulatory Authority announced SEC approval of a rule that requires all over-the-counter transactions in equity securities be reported to FINRA as soon as practicable, but no later than 10 seconds, following execution. The amendments are effective November 4, 2013. (5/23/2013) FINRA Regulatory Notice 13-19.