December 18, 2018 - Front Office Committee Agenda

Meeting Details

  • When: Tuesday December 18, 2018 @ 4:00 PM ET

Meeting Agenda

  • Spotlight Topic: Major Regulatory Initiatives of 2019

  • FINRA Updates
    • TRACE
      • December 3, 2018: TRACE for Securitized Products API Specification Update 
    • Additional FINRA Updates
      • December 7, 2018:  FINRA Examination Findings - FINRA Releases Report on their Recent Examination Findings.
      • November 28, 2018: SR-FINRA-2018-040 - Proposed Rule Change Relating to FINRA Rule 4512 (Customer Account Information)
  • SEC
    • December 11, 2018: Testimony on “Oversight of the U.S. Securities and Exchange Commission”
    • November 2018: SEC Rule 606 - SEC publishes the XML schema, sample reports, and a Rule 606 PDF Report Generator.  Please find the zip file here.
  • Exchange Updates
    • December 10, 2018: NYSEArca - 34-84762 - Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Liquidity Programs Until June 30, 2019
    • November 26, 2018: Nasdaq PHLX Introduces a FIX Interface Protocol for FBMS
  • CAT
    • December 6, 2018: CAT Alert 2018-004 - This alert memo provides guidance related to the linking obligations of industry members that report an Order Route Event to reflect the routing of an order to a national securities exchange.
    • Industry Updates on the CAT - Recordings Uploaded to the News Section of https://www.catnmsplan.com/


  • FIF Working Group Updates: Please click here to Join Working Groups.
    • Consolidated Audit Trail (CAT)
      • December 11, 2018: FIF sent a comment letter to the SEC on the Current Status of CAT.  To review the letter, please click here
      • November 29, 2018:  FIF submitted a list of 129 issues to the SROs/ThesysCAT pertaining to the final CAT Technical Specification
      • November 28, 2018:  FIF attended an in-person discussion with the SROs on Industry Testing and Error Correction
      • November 27, 2018:  Held a CAT Tech Specs Requirements Working Group Meeting
      • November 14, 2018:  Held an in-person deep dive with the SROs on FDID
      • November 7, 2018: Held an in-person deep dive with SROs on Phase 2c Rep Order Linkage
      • November 6, 2018: Launched the FIF CAT Tech Spec Requirements Working Group to review the final spec that came out on 10/30
      • October 1, 2018:  FIF submitted detailed spec review summaries and comments to the SROs, SEC, and ThesysCAT on V0.6 of the industry member tech spec
      • CAT NMS Plan Website
    • 606 Working Group - FIF launched a 606-focused working group to assist firms with the implementation requirements of SEC Rule 606.  If you would like to join this working group, please email the program office at fifinfo@fif.com
      • December 11, 2018 - FIF participated in an open call hosted by the Security Traders Association highlighting the recent amendments to SEC Rule 606
      • December 7, 2018 - FIF held a SEC Rule 606 working group meeting
    • OTC Equity Trading (FINRA Reg Notice 18-28)
      • November 9, 2018 - FIF submitted comments on FINRA Reg Notice 18-28, focusing on the Rule Proposal's requirement of mandating firms that operate an SDP obtain an MPID to report SDP activity.  To view the comment letter, please click here.
    • LTR Phase 3
      • December 13, 2018 - FIF and SIFMA held a joint working group call on LTR Phase 3 Contingency Planning
      • December 6, 2018 - FIF and SIFMA held a joint working group call on LTR Phase 3 Contingency Planning
    • Cost Basis Working Group
      • We will hold our next meeting on January 10th 
    • Cloud Technology Working Group
      • We will hold our next meeting on December 13th
    • Data and Technology
      • Next Meeting:  December 19, 2018
    • Retail Execution Quality
      • 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 recommendations.  
    • FIF Cybersecurity Working Group
      • Held our last meeting of the year on November 29th, focusing on a SEC report on email spoofing and other current events. 
    • 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)
  • FIF Year-End Event
    • FIF will be holding a year-end event on Wednesday, December 19th at Bloomberg's Offices at 731 Lexington Avenue.
  • Additional Updates - Equities
    • December 7, 2018: BX - 34-84753 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Defined Terms "In-the-Money" and "Out-of-the-Money" in BX Options Rules at Chapter I, Section 1
    • December 6, 2018: NYSEArca - 34-84735 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend NYSE Arca Rule 5.1-E(a)(2)
    • December 6, 2018: NYSEArca - 34-84737 - Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, to Amend Rules 6.62-O and 6.37A-O to Add New Order Types and Quotation Designations
    • December 6, 2018: CHX - 34-84733 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend CHX Article 22, Rule 6(a)
    • December 4, 2018: NASDAQ - 34-84723 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Delay a New Protocol "Ouch to Trade Options" or "OTTO" on The Nasdaq Options Market LLC ("NOM")
    • December 4, 2018: Cboe - RG18-046 Historical Web-Based Surveillance Reports No Longer Available
    • December 3, 2018: NYSE GROUP - PROPRIETARY MARKET DATA UPGRADES TO SUPPORT NYSE PILLAR
    • November 30, 2018: SR-NASDAQ-2018-100 - Proposal to amend The Nasdaq Options Market LLC Rules at Chapter I, Section 1, specifically the defined terms "in-the-money" and "out-of-the-money" at NOM Rules at Chapter I, Section 1(a)(67) and (68), respectively
    • November 29, 2018: NYSE - 34-84680 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Amend the Listed Company Manual for Acquisition Companies To Reduce the Continued Listing Standards for Public Holders from 300 to 100 and to Enable the Exchange to Exercise Discretion to Allow Acquisition Companies a Reasonable Time Period Following a Business Combination to Demonstrate Compliance with the Applicable Quantitative Listing Standard
    • November 28, 2018: BX - 34-84674 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 4756(c)(2)
    • November 21, 2018: NYSE National -  Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Its Certificate of Incorporation and Bylaws
  • Additional Updates - Options
    • December 6, 2018: Cboe - 34-84739 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Adopt a Shell Structure for the Cboe Options Rulebook in Connection with the Migration of the Exchange to Bats Technology
    • November 30, 2018: CboeBZX - 34-84695 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rule 19.8, Long-Term Options Contracts
    • November 30, 2018: Cboe - 34-84698 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rule 5.8, Long-Term Equity Options Series (LEAPS)
    • November 30, 2018: Cboe EDGX - 34-84697 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Directed Market Makers and Primary Market Makers
    • November 30, 2018: CboeEDGX - 34-84699 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rule 19.8, Long-Term Options Contracts
    • November 29, 2018: CboeEDGA - 34-84683 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Eliminate the Liquidity Swap Component of the Discretionary Range Instruction
    • November 29, 2018: PHLX - 34-84685- Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Pilot Period for the Listing of P.M.-Settled Nasdaq-100 Index Options Expiring on the Third Friday of the Month
    • November 28, 2018: SR MIAX 2018 37 - Amend Rule 510, Minimum Price Variations and Minimum Trading Increments, Interpretations and Policies .03 to relocate existing rule text from Rule 404, Series of Option Contracts Open for Trading
    • November 28, 2018: PHLX - 34-84672 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 3306(c)(2)
    • November 27, 2018: CboeEDGX - 34-84663 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Allow the Post Only Order Instruction on Complex Orders
    • November 27, 2018: BOX - 34-84658 - Notice of Designation of Longer Period for Commission Action on Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to Adopt Rules Governing the Trading of Complex Qualified Contingent Cross Orders and Complex Customer Cross Orders
    • November 26, 2018: UPDATED Nasdaq PHLX and ISE Update System Settings
    • November 19, 2018: Nasdaq PHLX Expands FBMS Snapshot Functionality
    • November 16, 2018: Nasdaq ISE, Nasdaq GEMX, and Nasdaq MRX Intra-day Electronic Quoting
  • Next Meeting Date: Tuesday, January 22, 2019 @ 4:00 pm ET.

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