June 25, 2019 - Front Office Committee Meeting Agenda

Meeting Details

  • When: Tuesday June 25, 2019 @ 4:00 PM ET

Meeting Agenda

  • FINRA Updates
    • TRACE
      • June 13, 2019: 34-86101 - Notice of Designation of a Longer Period (Extended from June 14 to July 29) for Commission Action on a Proposed Rule Change to Allow Additional Time for Reporting to TRACE of Transactions in U.S. Treasury Securities Executed to Hedge a Primary Market Transaction;
      • May 24, 2019: Update - TRACE for Treasuries User Guide;
      • May 17, 2019: CTCI Migration Production Testing for TRACE AND ORF;
    • Additional FINRA Updates
      • May 31, 2019: 34-85981 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Extend the Implementation of FINRA Rule 4240 (Margin Requirements for Credit Default Swaps);
      • May 22, 2019: 34-85911 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Establish a Corporate Bond New Issue Reference Data Service
  • SEC
    • June 10, 2019: Amendment to Single Issuer Exemption for Broker-Dealers;
    • June 5, 2019: Regulation Best Interest: The Broker-Dealer Standard of Conduct - The SEC finalized a new rule establishing a standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities;
    • June 5, 2019: Form CRS Relationship Summary; Amendments to Form ADV
    • May 21, 2019: 34-85906 - Notice Establishing the Commencement and Termination Dates of the Pre-Pilot Period of the Transaction Fee Pilot for National Market System Stocks;
    • May 17, 2019:  the SEC published in the Federal Register a request for comment pertaining to the current Electronic Blue Sheets (“EBS”) data collection process.
    Exchange Updates
    • May 28, 2019: NYSE - 34-85945 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend NYSE Rules 7.6, 7.31, 7.34, 98, 107B and 131A, to Specify Order Behavior for Orders Entered Via the Pillar Phase II Protocols;
    • May 23, 2019: NYSE - 34-85930 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change of New Rule 7.44 to Operate Its Retail Liquidity Program on Pillar, the Exchange's New Technology Trading Platform.
  • OCC
    • May 6, 2019:  SR- OCC-2019-003- Order Approving Proposed Rule Change to Require that an Actionable Identifier be Included on Customer and Non-Customer Securities Options Trades Other than Market Maker Trades.
      • Actionable Identifier FAQs.
  • CAT
    • June 12, 2019: In-person Consolidated Audit Trail Options Deep Dive June 11, 2019 in San Francisco – Recording & Presentation'
    • June 12, 2019: In-person Consolidated Audit Trail Options Deep Dive June 4, 2019 in New York – Recording & Presentation'
    • May 23, 2019: Industry Member Schema v2.1 (JSON);
    • May 23, 2019: OATS to CAT Events Field Level Mapping v2.
  • 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;
        • Industry Recommedations on recently-proposed spec additions (i.e cancelFlag/cancelTimestamp on fulfillment events, Order Effective Timestamp HandlingInstruction);
        • CAT Scenario Development
      • June 24, 2019:  CAT NMS Plan Operating Committee published the updated CAT Technical Specification (V2.2) and Scenarios Document (V2.1);
      • 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 16, 2019:  FIF joined industry members/SROs in an in-person meeting on CAT encryption, connectivity, and submission;
      • 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 comments to the SROs, SEC, and ThesysCAT on V0.6 of the industry member tech spec;
      • CAT NMS Plan Website.
    • 606 Working Group
      • June 20, 2019 - FIF met with SEC T&M Staff on Rule 606;
        • High-level review of draft 606 guidance;
      • June 12, 2019 - FIF to form a subgroup to formulate industry best practices to better facilitate SEC Rule 606 implementation;
      • 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
      • FIF will hold a working group meeting on Thursday, June 27 @ 11:00pm et.
      • FIF has formed a working group with the purpose of responding to the SEC's request for comment on EBS.  As part of this working group, FIF will consider recommendations pertaining to the retirement of EBS through CAT. If you would like to join this working group, please update your profile here.  
    • 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 a EU Buy-In Working Group kick-off meeting on Tuesday, June 25th at 2:00pm et.  The purpose of this working group is to determine the scope and implications of the CSDR Buy-In Rule on U.S.- based entities.  If you would like to join this discussion, please update your profile here. 
    • Cost Basis Working Group
      • We will hold our next meeting on July 11th;
      • We discussed complex debt issued in foreign currency and subject to OID at our last meeting;
      • We are awaiting guidance from the IRS on crypto on QOFs.
    • Cloud Technology Working Group
      • At our last meeting we were treated to a spotlight topic by Josh Blackburn from IEX who ran us through how they utilized cloud  to their advantage with their IEX Cloud offering. We also covered the SECs notice on safeguarding customer records and information in network storage.
    • Data and Technology
      • Next Meeting: June 26th;
      • On our last call the spotlight topic was focused on the creation of the LTSE Exchange.
    • FIF Cybersecurity Working Group
      • Our next meeting will be held on July 11th;
      • FIF held a meeting on June 6th focusing on the cybersecurity guidance for small firms presentation from FINRA's annual conference.
    • Quarterly Event
      • FIF will be holding a Quarterly Event on Thursday, June 27 at OTC Markets (300 Vesey Street, New York, NY) on the topic of SEC Rule 606.  If you would like to attend this event, please register here.  
    • 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
    • June 12, 2019: Proposal to amend Supplementary Material .01(b)(5) to NYSE Rule 8.600 relating to generic standards applicable to holdings in fixed income securities included in the portfolio of a series of Managed Fund Shares traded on the Exchange
    • June 12, 2019: NYSE Arca - Proposal (1) to amend NYSE Arca Rule 8.201-E to provide for issuance and redemption of such securities for the underlying commodity and/or cash, and (2) to list and trade the shares of the United States Bitcoin and Treasury Investment Trust under NYSE Arca Rule 8.201-E, as proposed to be amended
    • June 11, 2019: NASDAQ - 34-86083 - Notice of Filing of Proposed Rule Change to Amend Rule 4702 to Establish the "Midpoint Extended Life Order + Continuous Book" as a New Order Type
    • June 11, 2019: NYSE - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 7.31 Relating to the Yielding Modifier
    • June 6, 2019: BX - 34-86051 - Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Reassign Certain Investigation and Enforcement Functions Under the Exchange's Authority and Supervision
    • June 6, 2019: BX - 34-86060 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Order Routing Rule in BX Chapter VI, Section 11
    • June 4, 2019: BX - 34-86027 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Equity 7, Section 118(a) to Adopt Pricing for the Recently Adopted SCAR Routing Strategy
    • June 3, 2019: SR-NASDAQ-2019-050 - A proposal to delay implementation of the MIDP routing option until the third quarter of 2019
    • May 31, 2019: NYSE - 34-85990 - Notice of Filing of Proposed Rule Change to Amend Rule 123D
    • May 29, 2019: SR-NASDAQ-2019-048 - A proposal to amend Rule 4702 to establish the "Midpoint Extended Life Order + Continuous Book" as a new Order Type
    • May 29, 2019: NASDAQ - 34-85954 - Notice of Filing of Proposed Rule Change to Allow an Odd Lot-Sized Order to Be Eligible for the Midpoint Extended Life Order
    • May 29, 2019: NYSE - 34-85962 - Notice of Filing of Amendment No. 3 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 3, to Amend NYSE Rules 7.31, 7.36, 7.37; Make Conforming Amendments to NYSE Rules 1.1, 7.11, 7.12, 7.16, 7.18, 7.32, 7.34, and 7.36; and Amend the Preambles on Current Exchange Rules Relating to their Applicability to the Pillar Trading Platform
    • May 29, 2019: NASDAQ - 34-85957 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Complementary Services Offered by the Exchange Under Rule IM-5900-7
    • May 29, 2019: NYSE - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Exchange's Price List Related to Co-location Services
    • May 24, 2019: NYSE - Proposal to amend Rule 123D to permit the Exchange to declare a regulatory halt in a security that traded in the over-the-counter market prior to the initial pricing on the Exchange
    • May 21, 2019: NYSE Market Data: NYSE Alerts Decommission - August 2, 2019
  • Additional Updates - Options
    • June 13, 2019: Nasdaq Reminds Members of OCC's Actionable Identifier Rule
    • June 13, 2019: NYSE Arca Options: New Price Protection Functionality For Orders
    • June 12, 2019: NYSE Options - Penny Pilot Replacement Issues
    • June 11, 2019: CboeBZX - 34-86085 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Adopt Limit-on-Close ("LOC") and Market-on-Close ("MOC") Orders
    • June 11, 2019: CboeBZX - 34-86086 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Allow the Exchange to Determine the Availability of Order Types and Times-in-Force
    • June 10, 2019: NASDAQ - Relocation of ISE Rules
    • June 7, 2019: Cboe - 34-86065 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend its Rules Relating to Registration of Trading Permit Holders
    • June 4, 2019: BOX - 34-86030 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt Rules Governing the Trading of Complex Qualified Contingent Cross Orders and Make a Modification to the Execution Requirements for Complex Customer Cross Orders
    • June 3, 2019: Cboe - RG19-020 Discontinuation of Market Replay Access
    • May 31, 2019: CboeBZX - 34-85985 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Rule 21.7 Concerning Openings Following Trading Halts
    • May 31, 2019: CboeEDGX - 34-85988 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Rule 21.7 Concerning the Opening Auction Process
    • May 31, 2019: CboeEDGX - 34-85989 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Qualified Contingent Cross Orders ("QCC Orders") with More than One Option Leg ("Complex QCC Orders")
    • May 31, 2019: NASDAQ - Nasdaq Announces Changes to Reports on PHLX, NOM and BX Options
    • May 30, 2019: NYSE - Proposed Rule Change to Amend Commentary .02 to Rule 6.72-O in Order to Extend the Penny Pilot in Options Classes in Certain Issues
    • May 30, 2019: CboeBZX - 34-85966 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Amend Rule 14.11(c) (Index Fund Shares) to Adopt Generic Listing Standards for Index Fund Shares Based on an Index of Municipal Securities
    • May 30, 2019: MIAX - SR MIAX 2019 27 - Amend Rule 510, Minimum Price Variations and Minimum Trading Increments to extend the Penny Pilot Program through December 31, 2019
    • May 28, 2019: NYSE Options - Expansion of Give Up Functionality for Electronic Orders
    • May 24, 2019: MIAX - SR MIAX 2019 26 - Amend Rule 519, MIAX Order Monitor, to harmonize functionality to MIAX Emerald
    • May 20, 2019: Cboe - RG19-019 Elimination of On-Floor Position Transfer Procedures under Rule 6.49A Amendment to Presidential Exemption Related to Off-Floor Position Transfer Procedure
  • Next Meeting Date: Tuesday, July 23, 2019 @ 4:00 pm ET.

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