27 January, 2025
Working Group Updates 1/27/2025
27 January, 2025
- Webinar on Trading Risk Controls and Reg SCI. FIF hosted a webinar on Trading Risk Controls and Reg SCI. The moderator for the panel was Erin Clemens of StoneX. The panelists were William Barbera of the Schulte Roth law firm, Chris Boldt of Interactive Brokers, Doug Craig of Fidessa, and Jim Dolan of Kezar Trading. FIF would like to thank the moderator and panelists for sharing their expertise on these topics and for the informative and lively discussion during the panel.
- Short Position Reporting. FIF hosted two calls this past week for the Short Sales / Reg SHO / Short Reporting Working Group. The Working Group discussed the EDGAR limit on the number of securities that can be reported on Form SHO, notifying the SEC of Form SHO inaccuracies, and reporting for securities that do not have a U.S. trading symbol. The Working Group discussed a revised draft FIF letter to the SEC relating to the offsetting of long positions. The Working Group discussed draft FAQs to submit to the SEC. The Working Group discussed the potential impact of the January 20 regulatory freeze.
- Securities Lending Transparency (SLATE) Working Group. The SLATE Working Group continued its discussion of the SEC’s approval of the FINRA rule filing for SLATE and the upcoming implementation requirements. The Working Group discussed the potential impact of the January 20 regulatory freeze. The Working Group discussed issues and questions from FIF members relating to best practices and the jurisdictional scope of SLATE reporting.
- SEC Rule 606 and FINRA Rule 6470 Working Group. The SEC Rule 606 and FINRA Rule 6470 Working Group discussed the applicability of Rule 606(a) reporting to equity orders from a foreign affiliate. FIF members provided an update to the Working Group on a call with FINRA relating to the implementation of Rule 6470, including the tentative implementation schedule communicated by FINRA, look-through, the percentage of orders routed to different venues, symbol lists, symbol changes, file uploads, introducing firms adopting routing firm reports by reference, vendor reporting, reporting the percentage of orders that are held and not held, the FINRA XML file format and PDF renderer, and submission of reports and processing of feedback. The Working Group discussed Rule 6470 reporting for routes to OTC Link.
- Cybersecurity Working Group. Matt Weinberg of the Cybersecurity and Infrastructure Security Agency (CISA) provided an update on current threats to the financial industry. CISA is an agency of the US Department of Homeland Security. The Working Group also discussed recent FINRA, FBI and NSA updates relating to cybersecurity.
- Regulatory Implementations for 2025. FIF hosted a call for the SEC FINRA Regulations Working Group and the Compliance and Surveillance Working Group to discuss regulatory implementations for 2025 and beyond.
- Back Office Committee; SEC Adoption of Daily Reserve Requirement. The Back Office Committee reviewed applicable FICC, DTC, NSCC, SEC, MSRB, OCC, IRS and FINRA updates during the past month. FIF reviewed the SEC’s recent rule change to require broker-dealers that exceed a specified average credit threshold to compute the customer reserve requirement on a daily basis. Please find the agenda here.
- 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 Groups discussed the receipt, pass-through and reconciliation of CAT fees by retail brokers. The Working Groups discussed 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”, and the potential impact on CAIS and electronic blue sheets if this proposal were implemented.
Eduard Kotlyar