03 February, 2025
Working Group Updates 2/3/2025
03 February, 2025
- OFR Repo Reporting. The OFR Repo Reporting Working Group discussed a draft submission by FIF to the OFR that identifies overnight and intra-day repos executed by a foreign subsidiary that would not be reportable to the OFR. The Working Group discussed reporting the Security Value data element for mortgage-backed securities with an adjustable rate coupon and reporting the Security Value at Inception data element.
- Short Position Reporting. The FIF Short Sales / Reg SHO / Short Position Reporting Working Group continued its discussion of the implementation of short position reporting. The Working Group discussed reporting for unit investment trusts, reporting for ETFs, reporting for the scenario where no price is available, and the current Form SHO instructions. The Working Group discussed revised draft FAQ questions for the SEC. FIF submitted these FAQ questions to submit to the SEC. The Working Group continued its discussion of current testing challenges.
- Front Office Committee; Blue Ocean Presentation on Extended-Hours Trading. The Front Office Committee reviewed applicable updates and notices from the SEC, FINRA, FINRA CAT and the equity and option exchanges. Representatives from Blue Ocean Technologies discussed Blue Ocean ATS and recent and upcoming developments relating to extended-hours trading.
- Data & Technology Committee; Presentation on CUSIP Issuance Trends. The Data and Technology Committee reviewed capacity, latency and volume data for the prior month for the equity, options, currency, crypto and futures markets. Gerard Faulkner from CUSIP Global Services presented on CUSIP Issuance Trends.
- SEC Transition Working Group. The SEC Transition Working Group discussed issues and recommendations for FIF to raise with the incoming SEC Chair during 2025, including issues and recommendations relating to CAT, Electronic Blue Sheets, Rule 606, FINRA Rule 6470, MSRB RTRS, the FINRA TRF and short position reporting.
- AML and Sanctions: Annual Update by Debevoise Law Firm. Satish Kini and Robert Dura of the Debevoise law firm reviewed 2024 developments relating to anti-money laundering and sanctions regulations and key issues to focus on for 2025.
- Digital Asset Securities Working Group. The Digital Asset Securities Working Group discussed a revised draft FIF letter to the SEC on custody of digital asset securities by broker-dealers and the SEC’s policy statement on Custody of Digital Assets by Special Purpose Broker-Dealers.
- CAT Transaction Reporting and CAT CAIS Working Groups. FIF hosted a joint call for the CAT Transaction Reporting and CAT CAIS Working Groups. The Working Group discussed reporting the ALGMod handling instructions value. The Working Group reviewed the SEC’s recent exemptive order on rep order linkage. The Working Group reviewed recent updates to the CAT Technical Specifications and CAT Reporting Scenarios documents. The Working Group reviewed recent FAQ updates. The Working Group continued its discussion of the January 17 blog by Robert Cook, President and CEO of FINRA, titled “CAT Should Be Modified to Cease Collecting Personal Information on Retail Investors.”
Eduard Kotlyar