20 May, 2024
Working Group Update 5/20/2024
20 May, 2024
- SEC Rule on Short Position and Short Activity Reporting. The FIF Short Sales / Reg SHO / Short Reporting Working Group continued its review and discussion of a draft FIF letter to the SEC on implementation issues relating to SEC Rule 13f-2. Rule 13f-2 requires the reporting of certain short positions and daily net changes in positions. The Working Group continued its discussion of the jurisdictional scope of Rule 13f-2 reporting. The Working Group continued its discussion on reporting CUSIP and CINS identifiers. The Working Group discussed an inconsistency in the rule relating to the definition of “gross short position”.
- FIF Rule 605 Working Group. The Rule 605 Working Group continued its review of a draft FIF comment letter to the SEC relating to implementation of the changes to Rule 605 that the SEC adopted on March 6, including the following issues and topics: conditions for a stop order to become executable; stop orders where the triggering occurs at a downstream broker-dealer; midpoint-or-better limit orders; marketability of orders received pre-open; computing the average midpoint; computing the share-weighted average price improvement; reporting for GTC orders; and reporting for directed, pegged and slide orders.
- FIF Securities Lending Transparency Working Group. Ignacio Sandoval of the Orrick law firm reviewed the recent FINRA rule filing for the SLATE (Securities Lending and Transparency Engine) system to be developed and operated by FINRA.
- FIF CAIS Working Group. The CAIS Working Group discussed obtaining identifiers for certain foreign customers. The Working Group discussed CAIS reporting for accounts held for participants in an employee stock plan. The Working Group discussed whether CAIS report cards will include unresolved Material Inconsistencies from a prior month. The Working Group discussed accounts that a firm has terminated where the accounts have unresolved Material Inconsistencies.
- FIF CAT Transaction Reporting Working Group. FIF hosted two calls this past week for the CAT Transaction Reporting Working Group. During the first call, the Working Group discussed the May 14 FIF member meeting with the SEC, the CAT Plan Participants and FINRA CAT on linkage of representative to customer orders and linkage of order fulfillments to representative and principal orders. The Working Group also continued its discussion of CAT reporting for RFQ responses that are not immediately actionable. During the second call, the Working Group discussed a production issue resulting from an option symbol not being included in the FINRA CAT end-of-day reportable security list. The Working Group continued its discussion of CAT reporting for RFQ responses that are not immediately actionable. The Working Group reviewed and discussed a draft plan amendment to be submitted by the CAT Plan Participants requesting a permanent exemption from the requirement to report certain verbal activity to CAT.
Eduard Kotlyar