July 23, 2019: Front Office Committee Meeting Agenda

Meeting Details

  • When: Tuesday July 23, 2019 @ 4:00 PM ET

Meeting Agenda

  • Spotlight Topic: FINRA presentation on the recent FINRA/SEC joint-statement on Broker-Dealer Custody of Digital  Asset Securities;
  • FINRA Updates
    • OATS
      • July 11, 2019: SR-FINRA-2019-021 - Proposed Rule Change Relating to Exemptions from the Order Audit Trail System Recording and Reporting Requirements;
    • TRACE
      • June 26, 2019: Reminder – First CTCI Migration Production Test for TRACE and ORF;
      • June 21, 2019: 34-86178 - Order Approving 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.
    • Additional FINRA Updates
      • FINRA previews new site design: https://preview.finra.org/;
      • July 19, 2019 - Trade Reporting Notice 7/19/19 - FINRA is issuing this Notice to remind members of their obligation to have systems or processes in place to determine whether a transaction in a TRACE Eligible Security has occurred and is, therefore, reportable, even if it was not included on the TRACE security master list at the time of the transaction;
      • July 18, 2019 - Regulatory Notice 19-24 - FINRA encourages firms to notify FINRA if they engage in activities related to digitial assets;
      • July 9, 2019:  Regulatory Notice 19-22 - FINRA Requests Comment on a Proposal to Publish ATS Volume Data for Corporate Bonds and Agency Debt Securities on FINRA’s Website;
      • July 5, 2019: 34-86315 - Notice of Filing of a Proposed Rule Change to Expand OTC Equity Trading Volume Data Published on FINRA's Website;
      • July 1, 2019: 34-86256 - Order Instituting Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to Establish a Corporate Bond New Issue Reference Data Service;
      • July 1, 2019: Regulatory Notice 19-21 - Margin Requirements for Exchange-Traded Notes.
  • SEC
    • July 23:  Status Update - SEC Rule 606;
    • July 3, 2019: 33-10658 - Investor Advisory Committee Meeting;
    • July 3, 2019: 33-10660 - List of Rules to be Reviewed Pursuant to the Regulatory Flexibility Act;
    • July 1, 2019: 34-86253 - Fixed Income Market Structure Advisory Committee Meeting.
  • Exchange Updates
    • July 8, 2019: Cboe EDGX - 34-86323 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Updated Rules Related to Complex Orders and Trading Halts;
    • July 1, 2019: Updated Release Dates: FINRA/Nasdaq TRF to Enhance Reject Message Text;
    • June 26, 2019: NYSE Arca - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Pilot Period for the Exchange Retail Liquidity Program until September 30, 2019.
  • CAT
    • July 16, 2019: In-person Consolidated Audit Trail Options Deep Dive July 16, 2019 in Philadelphia;
    • June 25, 2019: Industry Member Schema v2.2 (JSON);
    • June 24, 2019: Industry Member Technical Specifications v2.2;
    • June 24, 2019: Industry Member Reporting Scenarios v2.1;
    • June 24, 2019: CAT NMS Plan Operating Committee Publishes CAT Roll-Out Timelines;
    • June 18, 2019: CAT NMS Plan Operating Committee Publishes additional FAQs.
    • 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
          • 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 FINRACAT 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
          • July 22, 2019 - FIF held a 606 Working Group meeting
          • July 8, 2019 - FIF held a 606 Working Group meeting to discuss 1) 606 compliance date and upcoming request for an extension; 2) implementation options; 3) continued advocacy with Commission Staff. 
          • 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 submits final comment letter to the Commission;
          • FIF will hold a working group meeting on July 15th with the intent of reviewing the final draft of the comment letter on the efficacy of the EBS;
          • FIF has formed this 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 held a working gorup meeting on EU Buy-In on Tuesday, July 22 at 2:00pm est. If you would like to join this discussion, please update your profile here. 
        • Cost Basis Working Group
          • We are awaiting guidance from the IRS on crypto and 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.
          • Our next meeting is July tomorrow, where we'll discuss the future of cloud technology and where it will be in 5-10 years time.
        • Data and Technology
          • Next Meeting: July 31;
          • On our next call the spotlight topic will be focused on CAT clock sync and will be presented by Sync-n-Scale.
        • FIF Cybersecurity Working Group
          • Our last meeting was held on July 11th;
          • The meeting focused on the FSSCC Financial Services Sector Cybersecurity Profile and an article on focused attacks on our industry from Iranian state hackers in response to US hacks on Iran. 
        • 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
      • July 11, 2019: NYSE - 34-86351 - Order Granting Approval of a Proposed Rule Change to Amend NYSE Rule 123D
      • July 5, 2019: NASDAQ - 34-86314 - Notice of Filing of Amendment No. 3 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 3, to Revise the Exchange's Initial Listing Standards Related to Liquidity
      • July 3, 2019: NYSE Arca - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 7.37-E to Update a Rule Cross Reference
      • June 28, 2019: NASDAQ - 34-86246 - Order Granting Approval of a Proposed Rule Change to Adopt Additional Requirements for Listings in Connection with an Offering Under Regulation A of the Securities Act
      • June 28, 2019: NYSE - 34-86238 - Notice of Designation of Longer Period for Commission Action on Proposed Rule Change to Amend Section 703.18 of the Listed Company Manual to Permit the Listing of Event-Based Contingent Value Rights and Make Other Changes to the Listing Standards for Contingent Value Rights
      • June 27, 2019: BX - 34-86221 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Relocate the BX Options Rules at Chapter IV, Securities Traded on BX
      • June 21, 2019: NYSE - FLOOR BROKER VERBAL INTEREST AT THE CLOSE
      • June 21, 2019: NYSE - RULES AND POLICIES REGARDING USE OF THE FLOOR OFFICIAL TRACKING ENGINE (FORTÉ)
      • June 18, 2019: NYSE Pillar Migration Update - NYSE Chicago
    • Additional Updates - Options
      • July 10, 2019: NYSE Arca Options: Modifications to Give-Up Process
      • July 3, 2019: SR-NASDAQ-2019-054 - A proposal to amend Nasdaq Rule 5735(b)(1)(B)(v) relating to generic listing standards applicable to fixed income securities included in the portfolio of a series of Managed Fund Shares listed on the Exchange 
      • July 2, 2019: 34-86280 - Notice of Filing of Amendment No. 1 and Order Instituting Proceedings to Determine Whether to Approve or Disapprove of a Proposed Rule Change, as Modified by Amendment No. 1, to Introduce Order Book Priority for Equity Orders Submitted on Behalf of Retail Investors
      • July 2, 2019: Phlx - 34-86286 - Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 1019, Adopt a New Rule 1073, Adopt a New Rule 1074, Rule 1080, Adopt a New Rule 1096, and Adopt a New Rule 1097
      • July 1, 2019: SR-NASDAQ-2019-053 - Proposal to amend its rules governing the Nasdaq Options Market to modify the give up of a Clearing Participant by a Participant on NOM transactions
      • June 27, 2019: 34-86224 - Notice of Filing of a Proposed Rule Change to Use Cboe Exchange's Affiliate, Cboe Trading, as an Inbound and Outbound Router for Cboe Options
      • June 27, 2019: 34-86214 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amend the Trigger for its Opening Rotation Process for Equity Options
      • June 26, 2019: Cboe EDGX - 34-86202 - Notice of Designation of Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment No. 1, to Adopt Rule 21.22 (Complex Automated Improvement Mechanism)
      • June 25, 2019: Allocation of Orders of Five (5) Contracts or Fewer on PHLX
    • Next Meeting Date: Tuesday, August 27, 2019 @ 4:00 pm ET.

    _________________________________________________________________

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