August 20, 2019: Back Office Committee Meeting Agenda

Meeting Details  

  • When: Tuesday, August 20, 2019 @ 11:00 am ET

Meeting Agenda 

  • Spotlight Topic: Regulatory Notice 19-26 - Regulation Best Interest - SEC adopts Best Interest standards of conduct

  • DTCC Updates
    • DTC Updates
      • August 7, 2019: 34-86589 - Notice of Filing Amendment Nos. 1 and 2, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, to Amend the Settlement Guide Procedures to Provide Status Information for Institutional Transactions to a Matching Utility;
      • August 2, 2019: 11783-19 - Settlement Optimization – Night Cycle Reengineering;
      • July 22, 2019: B11782-19 - DTC Proposed Rule Change – Amendment to Settlement Guide to Implement a New Algorithm for Transactions Processed in the Night Cycle (SR-DTC-2019-005);
      • July 31, 2019: 11901-19 - DTC Will Convert its ISO20022 Corporate Action Messaging to the SWIFT SR2019 Version on November 17, 2019;
      • July 25, 2019: 11786-19 - Implementation of the New DTC Imaging System;
      • July 15, 2019: 11772-19 - Extended Instruction Processing Time on Expiration Date for Select Voluntary Corporate Actions with an Expiration Between 6:00 PM and Midnight ET - Effective September 16, 2019.
    • FICC Updates
      • August 5, 2019: GOV704-19 - Sponsored Member Risk Monitoring;
      • July 29, 2019: GOV698-19 - FICC Labor Day Holiday Schedule;
      • July 18, 2019: MBS723-19 - Submission of Rule Filing SR-FICC-2019-003 – Revise MBSD VaR Floor.
    • NSCC Updates
      • August 14, 2019: a8736 - ACATS-Fund/SERV Transfer Record Modifications – Final Dates;
      • August 1, 2019: a8732 - Monthly RECAPS Schedule for AUGUST 2019;
      • July 22, 2019: a8728 - SUBMISSION OF PROPOSED RULE CHANGE (SR-NSCC-2019-002) – AMENDMENTS WITH RESPECT TO THE RECEIPT OF CNS
        SECURITIES;
      • July 9, 2019: a8726 - Mutual Fund Profile Service II – Profile Security Specification Reporting Tool.
  • FINRA Updates
    • TRACE
      • August 8, 2019: New Vendor Management System for TRACE Vendors;
      • July 26, 2019: Regulatory Notice 19-25 - FINRA Requests Comment on a Proposal to Require Reporting of Transactions in U.S. Dollar-Denominated Foreign Sovereign Debt Securities to TRACE
      • July 22, 2019: Reminder – Second CTCI Migration Production Test for TRACE and ORF.
    • Additional FINRA Updates
      • August 9, 2019 - Regulatory Notice 19-27 - FINRA is engaged in retrospective rule review of rules related to the exploitation of seniors.  FINRA is requesting industry comment on or before October 8, 2019;
      • July 29, 2019: 34-86509 - Order Instituting Proceedings to Determine Whether to Approve or Disapprove Proposed Rule Change to Amend FINRA Rule 5110 (Corporate Financing Rule - Underwriting Terms and Arrangements) to Make Substantive, Organizational and Terminology Changes;
      • July 26, 2019: SR-FINRA-2019-022 - Proposed Rule Change to Amend FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and FINRA Rule 5131 (New Issue Allocations and Distributions).
  • SEC
    • August 16, 2019: SEC released the FIF requested FAQs on SEC Rule 606.  Read them here;
    • August 6, 2019: FAST Act Modernization and Simplification of Regulation S-K.
  • MSRB
    • August 5, 2019: 34-86572 - Notice of Filing of a Proposed Rule Change to Amend and Restate the MSRB's August 2, 2012 Interpretive Notice Concerning the Application of Rule G-17 to Underwriters of Municipal Securities. 
  • TMPG
    • July 11, 2019: TMPG Releases Best Practice Recommendations on Clearing and Settlement;
    • July 11, 2019: Best Practices for Clearing and Settlement in the Secondary Market for U.S. Treasury Securities;
    • July 11, 2019: Best Practices for Treasury, Agency Debt and Agency Mortgage Backed Securities Markets
    • July 11, 2019: White Paper on Clearing and Settlement in the Secondary Market for U.S. Treasury Securities;
    • June 25, 2019: TMPG Meeting Agenda available.
  • OCC 
    • August 5, 2019: Option Pricing Model Enhancements;
    • August 2, 2019: Margin Modeling Enhancements;
    • July 25, 2019: Restriction on Lending Specific Wrong Way Risk Securities ;
    • July 24, 2019: Default Testing Required Participation;
    • July 23, 2019: 34-86436 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Administrative Updates to The Options Clearing Corporation's Risk Management Policies;
    • July 18, 2019: OCC Training Sessions
  • CAT
      • August 16, 2019 - FINRA CAT published CAT Connectivity Specs;
      • August 15, 2019 - FINRA CAT to hold webinar on CAT Security on August 28 @ 4:15;
      • August 14, 2019 - FINRA CAT published a presentation and recording on the equity representative order industry outreach call;
      • August 7, 2019 - FINRA CAT Published CAT User Onboarding Guidance;
      • August 7, 2019: FINRA CAT to hold an Industry Webinar - Firm Designated ID (“FDID”) Follow-up on September 10 @ 4:15.  FIF has formed a FDID roundtable in preparation for that meeting;
      • August 7, 2019: Industry Webinar – CAT Error Correction Overview (August 27, 2019);
      • August 1, 2019: CAT Tech Spec Working Group Q&A;
      • July 31, 2019: Industry Member Reporting Scenarios v2.2;
      • July 18, 2019:In-person Consolidated Audit Trail Options Deep Dive July 16, 2019 in Philadelphia – Recording;
      • July 18, 2019: In-person Consolidated Audit Trail Options Deep Dive July 16, 2019 in Philadelphia – Presentation.
  • FIF Working Group Updates: Please click here to Join Working Groups
    • Consolidated Audit Trail (CAT)
      • Current FIF CAT Workstreams:
        • CAT Tech Spec Review;
        • OTC Equities Reporting;
        • CAT Scenario Development;
        • Phase 2c/2d CAT Event Scoping;
        • FDID;
        • OSO CAT Reporting.
      • August 15, 2019 - FIF published CAT Cost Survey;
      • August 14, 2019 - FIF met with FINRA CAT and the SROs on CAT OTC Quote Events and the proposed CAT Large Trader Phase 3 Solution;
      • August 13, 2019 - FIF met with FINRA CAT/SROs on Paired Options Orders.  FIF will form a subgroup with the industry associations with the intention of providing detailed feedback to the SROs;
      • July 10, 2019: FIF met with SEC Trading & Markets Staff to discuss industry proposal on Large Trader Rule Phase 3;
      • July 3, 2019:  FIF disseminated a CAT Cost Survey designed to assist industry members in assessing the current and anticipated CAT implemenation spend;
      • June 19, 2019: FIF participated in a focus-group session with FINRA CAT on CAT connectivity options;
      • June 4, 2019: FIF met with SEC Staff and members of Congress to discuss CAT and 606
      • June 3, 2019:  FIF provided FINRA CAT/SROs with recommendations on the CAT Web Portal functionality;
      • April 2, 2019:  FIF submitted a Comment Letter to the SROs on the current CAT implementation schedule and remaining risks; 
      • March 14, 2019: FIF attended an in-person Error Feedback and Correction Working Session with the CAT NMS team;
      • February 4, 2019: FIF submitted a comment letter on the CAT transitional period to the CAT Leadership Committee;
      • December 11, 2018:  FIF submitted comments to the Commission on the current status of CAT;
      • October 1, 2018:  FIF submitted detailed spec review summaries and commentsto the SROs, SEC, and ThesysCAT on V0.6 of the industry member tech spec;
      • CAT NMS Plan Website.
    • 606 Working Group
      • August 19, 2019 - FIF held a 606 working group call focused on discussion of the recently published 606 FAQs and next steps pertaining to a formal request for an extension of the Rule's compliance date;
      • August 2, 2019 - FIF and STA sent a joint-letter to SEC Commissioners and Staff on the current status of Rule 606 implementation and request for relief.
      • June 20, 2019 - FIF met with SEC T&M Staff to review a draft version of FAQs.  
        • FIF's interpretation of the Commission's verbal guidance can be found here.
      • May 2, 2019 - FIF submitted a follow-up request for guidance to the Commission;
      • April 24, 2019 - The SEC granted FIF's request for an extension in the Rule 606 implementation date.  FIF is currently working with the Commission on the development of guidance;
      • April 11, 2019 - FIF met with SEC Trading and Markets staff to discuss remaining SEC Rule 606 challenges;
      • February 20, 2019 - FIF submitted a comment letter to the SEC discussing Rule 606 challenges;
      • February 5, 2019 - FIF met with the SEC Trading and Markets staff to discuss challenges and recommendations attributed to the Amended Rule 606;
      • January 30, 2019 - FIF submitted a comment letter to the SEC raising significant Rule 606 implementation challenges;
      • December 11, 2018 - FIF participated in an open call hosted by the Security Traders Association highlighting the recent amendments to SEC Rule 606.
    • FIF EBS Working Group
      • July 17, 2019 - FIF submitted comments to SEC Staff focused on industry recommendations pertaining to the current EBS request/response systems and considerations for potential surveillance through CAT.
    • TRACE Wroking Group
      • August 16, 2019 - FIF held a working group meeting with the TRACE working group to solicit industry feedback pertaining to Regulatory Notice 25-19 - FINRA propsoal to include the reporting of U.S. dollar denominated Soverign Debt Securites to TRACE.  FIF intends to submit comment on or before the September 24 deadline. 
    • Tax Information Working Group
      • FIF formed a working group to discuss, inter alia, industry best practices, increasing tax reporting efficiencies, and leveraging new and evolving technology to revise tax reporting processes.  If you would like to join this working group, please update your profile here.  
    • Retail Execution Quality
      • FIF held a meeting on May 3;
      • FIF submitted comments to the SEC requesting that the Commission review and issue a formal request for comment pertaining to FIF's Rule 605 Modernization Recommendations;
      • FIF 605 Subgroup representatives met with SEC Staff on Tuesday, October 30th to discuss the subgroup's recommendations of rule 605 reform.  Please click here to view the draft.
    • EU Buy-In Working Group
      • FIF will hold our next EU Buy-In call on Tuesday, August 20 at 2pm est.  
    • Cost Basis Working Group
      • We are awaiting guidance from the IRS on crypto and QOFs.
    • Cloud Technology Working Group
      • At our last meeting we were treated to a spotlight topic by Dave Larson from HPE who presented on where he sees the future of cloud technology going in the next 5-10 years. FIFs Kevin McCabe also spent some time introducing the Cloud Technology Best Practices Guide we've been developing this year and took suggestions for additional topics and changes for the document. 
      • Our next meeting is September 13th
    • Data and Technology
      • Next Meeting: August 29;
      • On our next call the spotlight topic will be focused on a research project that our Co-Chair Rob Wallos and the data scientists at HPE have been working on.
    • FIF Cybersecurity Working Group
      • Our last meeting was held on August 15th;
      • The meeting focused on an extremely detailed 2019 state of cybersecurity report from Wipro. 
    • FIF Industry Solutions Offering
      • Visit the FIF Industry Solutions Page for the Latest Products & Services from Fellow FIF Members
    • FIF Retail Execution Quality Statistics
    • FIF Regulatory Initiatives Tracking Site - (Requires FIF Website Login)FIF Monthly Reports
      • Market Data Capacity Statistics – (Requires FIF Website Login)

 

Next Meeting Date: Tuesday, September 17, 2019 @ 11:00 am ET. 

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