January 22, 2019: Front Office Committee Meeting Agenda

Meeting Details

  • When: Tuesday January 22, 2019 @ 4:00 PM ET

Meeting Agenda

  • Spotlight Topic: 606 Update - Son-Mi Lee, FIF

  • FINRA Updates
    • Tick Size Pilot
      • January 16, 2019:  FINRA issues guidance on the obligation of firms to report Tick Size Pilot related data in OATS Reports.
      • December 27, 2018: FINRA Appendix BI and BII Data Re-published on December 27th 2018.
    • Additional FINRA Updates
      • December 31, 2018:  2018 FINRA Cybersecurity Report.
      • December 18, 2018: Regulatory Notice 18-42 - FINRA Announces Updates of the Interpretations of Financial and Operational Rules.
  • SEC
    • December 21, 2018: BHCA-5 - Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds.
    • December 19, 2018: 34-84861 - Risk Mitigation Techniques for Uncleared Security-Based Swaps.
    • December 19, 2018: S7-05-18 - The SEC releases their final rule on a Transaction Fee Pilot for NMS Stocks.
    • November, 2018: 606 Taxonomies -  SEC provides a list of sample Amended Rule 606 reports and a draft technical specification.
  • Exchange Updates
    • January 17, 2019: NYSE - Update on NYSE Pillar Migration
    • January 9, 2019: Options Exchanges - Approval of Supplement to the Options Disclosure Document.
    • January 8, 2019: New Timing: Nasdaq to Introduce Midpoint Trade Now Functionality.
    • December 21, 2018: SEC Approves MIAX Emerald Exchange; February 22, 2019 Launch Expected.
    • December 18, 2018: 34-84843 - SROs Propose Limit-up Limit-down Plan be Made Permanent
  • CAT
    • January 17, 2019: Several new CAT FAQs, as well as some updated FAQs, have been posted to catnmsplan.com, and can be found here
    • Industry Updates on the CAT - Recordings Uploaded to the News Section of https://www.catnmsplan.com/ .
    • ThesysCAT distributed an email notification to firms subject to CAT .

  • FIF Working Group Updates: Please click here to Join Working Groups.
    • Consolidated Audit Trail (CAT)
      • January, 2019:  FIF continues to meet weekly with the CAT Tech Spec Requirements Working Group to discuss CAT implementation scenarios.
      • January 15, 2019:  FIF participated in a working session with the SROs on FDID.
      • FIF submitted a list of issues to the SROs/ThesysCAT pertaining to the final CAT Technical Specification.
      • January 8, 2019:  FIF held a CAT Working Group meeting discussing the SRO Proposed Option Origin Code and provided an overview of spec issues raised with the SROs. 
      • December 21, 2018:  FIF submitted a list of issues to the SROs/ThesysCAT pertaining to the final CAT Technical Specification.
      • December 21, 2018:  The SROs presented revised Options Origin Codes to be incorporated in the next iteration of the CAT tech spec.
      • December 11, 2018:  FIF submits comments to the Commission on the current status of CAT.
      • November 28, 2018:  FIF attended an in-person discussion with the SROs on Industry Testing and Error Correction.
      • November 14, 2018:  Held an in-person deep dive with the SROs on FDID.
      • 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
      • January 22, 2019 - FIF presented a draft version of a comment letter to be submitted to the Commission on challenges and recommendations pertaining to Amended Rule 606.
      • January 14, 2019 - FIF presented an updated version of the SEC meeting materials with the FIF 606 Working Group.  
      • January 7, 2019 - Reviewed a draft version of the presentation to be discussed with SEC Staff during a scheduled in-person meeting on Thursday, January 24th.
      • December 11, 2018 - FIF participated in an open call hosted by the Security Traders Association highlighting the recent amendments to SEC Rule 606.
    • 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
      • January 11, 2018 - FIF and SIFMA held a meeting to continue the discussion of possible LTID Phase 3 solutions.
      • January 4, 2018 - FIF and SIFMA met to continue the discussion of LTID Phase 3.
      • December 20, 2018 - FIF and SIFMA met to continue whiteboarding of possible LTID Phase 3 solutions.
      • December 13, 2018 - FIF and SIFMA continued analysis of LTID Phase 3. 
      • 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 February 7th 
    • Cloud Technology Working Group
      • We will hold our next meeting in February
    • Data and Technology
      • Next Meeting: January 30th
    • 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
      • Our next meeting will be held on January 31st, where we will focus on FINRA's report on selected cybersecurity practices - 2018.
      • Held our last meeting of the year on November 29th, focusing on a SEC report on email spoofing and other current events. 
    • FIF Staff wrote an article summarizing FIF's December, 2018 year-end event, focusing on non-discretionary regulatory initiatives scheduled for 2019.
    • 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)
  • Additional Updates - Equities
    • January 4, 2018: Reminder: Nasdaq, BX and PSX to Update the Display of Best Priced Orders to the SIPs
    • December 31, 2018: SR-NASDAQ-2018-109 - Proposal to amend rule 2210, titled "Communications with the Public."
    • December 31, 2018: NYSE Arca Limit-Up Limit-Down Tier 1 ETP List
    • December 26, 2018: NASDAQ BX - 34-84952 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Chapter VI, Section 5
    • December 26, 2018: NYSE Arca - 34-84976- Order Instituting Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to Amend Rule 7.44-E to Expand and Modify the Exchange's Retail Liquidity Program
    • December 21, 2018: NASDAQ BX - 34-84932 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend General 8
    • December 19, 2018: SR-NASDAQ-2018-106 - Proposal to eliminate the Extended Life Priority Order Attribute, which has not been implemented to date
    • December 19, 2018: NASDAQ - 34-84856 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Order Price Protection
    • December 19, 2018: CHX - 34-84852 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Decommission the Exchange's Outbound Routing Service and the Sub-second Non-Displayed Auction Process
    • December 19, 2018: NYSE Arca - 34-84863 - Order Instituting Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to Amend NYSE Arca Rule 5.2-E(j)(6) Relating to Equity Index-Linked Securities Listing Standards Set Forth in NYSE Arca Rule 5.2-E(j)(6)(B)(I)
    • December 18, 2018: NASDAQ BX - 34-84846 - Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Price Improvement Program Until June 30, 2019
  • Additional Updates - Options
    • January 9, 2019: Phlx - 34-84981 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Establish Rules Governing the Give Up of a Clearing Member by a Member Organization on Exchange Transactions
    • January 7, 2019: Miami International Holdings reports 2018 trading results for MIAX Exchange Group; MIAX Exchange Group sets new market share and volume records.
    • December 27, 2018: Cboe - RG18-050 Prearranged Trades
    • December 26, 2018: CboeBYX - 34-84972 - Notice of Designation of Longer Period for Commission Action on Proposed Rule Change to Make Permanent Rule 11.24, Which Sets Forth the Exchange's Pilot Retail Price Improvement Program
    • December 26, 2018: NASDAQ Options - 34-84960 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Chapter VI, Section 5 of the Rules of The Nasdaq Options Market
    • December 21, 2018: Cboe - RG18-049 Bid-Ask Differentials for TLRY
    • December 21, 2018: PHLX Decommissions Professional Customer AON Orders
    • December 21, 2018: CboeBZX - 34-84927 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Halt Auction Process
    • December 21, 2018: CboeBZX - 34-84928 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Adopt Definitions of Ports and Discontinue Bulk Order Functionality and Implement Bulk Message Functionality
    • December 21, 2018: Cboe - 34-84940 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Penny Pilot Program
    • December 21, 2018: CboeBZX - 34-84948 - Notice of Designation of a Longer Period for Commission Action on Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, to Amend BZX Rule 14.11(c) (Index Fund Shares)
    • December 20, 2018: BOX - 34-84902 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rule 7050
    • December 20, 2018: SR-NASDAQ-2018-107 - A proposal to amend Chapter VI, Section 5 of the rules of The Nasdaq Options Market to extend through June 30, 2019 or the date of permanent approval, if earlier, the Penny Pilot Program in options classes in certain issues, and to change the date when delisted classes may be replaced in the Penny Pilot
    • December 19, 2018:CboeEDGX - 34-84868 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Adopt Complex Reserve Order Functionality
  • Next Meeting Date: Tuesday, February 26, 2019 @ 4:00 pm ET.

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