26 February, 2024
Working Group Update 2/26/2024
26 February, 2024
- FIF Back Office Committee; Update from FICC on Centralized Clearing of Treasuries. The Back Office Committee reviewed applicable FICC, DTC, NSCC, SEC, MSRB, OCC, IRS and FINRA updates during the past month. Jim Hraska of FICC discussed the rule recently adopted by the SEC to expand centralized clearing of Treasuries. Please find the Agenda here.
- FIF TRACE Working Group. The TRACE Working Group reviewed a draft supplemental comment letter on the FINRA and MSRB rule proposals to reduce the reporting timeframes for corporate, agency and municipal bonds to one minute. FIF submitted the supplemental comment letter to the SEC on February 26.
- Law Firm Presentation on SEC Rule to Expand the Definition of “Dealer”. Ignacio Sandoval of the Morgan Lewis law firm reviewed the rule adopted by the SEC to expand the definition of “dealer” under the Securities Exchange Act. FIF invited the members of the Compliance and Surveillance Working Group and the SEC/FINRA Regulations Working Group to participate on this call.
- FIF Securities Lending Transparency Working Group. An FIF member provided an update on industry member discussions with FINRA relating to implementation of the new securities lending reporting system mandated by the SEC.
- FIF CAT Transaction Reporting Working Group. FIF hosted three calls this past week for the CAT Transaction Reporting Working Group. The first call focused on CAT billing and reconciliation. During this call, the Working Group discussed the expected implementation date for CAT billing. The Working Group also reviewed and discussed a draft FIF comment letter on CAT billing and reconciliation. During the second call, the Working Group discussed the planned updates to the Technical Specifications posted by FINRA CAT, CAT reporting for IOIs, and the upcoming leap day. The Working Group reviewed the recent updates to CAT FAQs F5, F6 and F7 relating to CAT reporting for representative orders. The Working Group reviewed and discussed a draft FIF letter to the CAT Plan Participants and FINRA CAT requesting confirmation that firms can report to CAT order modifications that do not change the material terms of an order. The third call focused on linkage of representative orders. The Working Group discussed a draft FIF letter to the SEC identifying scenarios where further guidance is required for reporting linkage of all representative orders to customer orders and linkage of all order fulfillments to principal and riskless principal orders.
Eduard Kotlyar