23 August, 2021
Working Group Updates
23 August, 2021
- Back Office Committee. On August 17, 2021, representatives from DTCC presented on their Securities Financing Transaction (SFT) Clearing Service. The SFT service provides central clearing for equity lending and borrowing transactions.
- Data and Technology Committee. On August 18, 2021, John Ramsay from IEX reviewed changes to IEX’s retail program, which were approved recently by the SEC. IEX will be publishing a retail liquidity indicator on their prop feed and on the tape showing where there is trading interest for at least 100 shares willing to trade against retail orders at the midpoint.
- Reg SHO/Short Interest Reporting Working Group. The Working Group continued its review and discussion of a draft FIF comment letter on FINRA Regulatory Notice 21-19, “FINRA Requests Comment on Short Interest Position Reporting Enhancements and Other Changes Related to Short Sale Reporting”.
- Rule 606 Working Group. The Working Group continued its discussion of look-through for Rule 606 reporting of options routing, including the review of a draft presentation to Securities and Exchange Commission personnel on this issue. The Working Group discussed the reporting of multi-leg option orders under Rule 606.
- FIF CAT Tech Specs Working Group. The CAT Tech Specs Working Group discussed issues and questions from FIF members relating to the following: the upcoming TRF requirement to report ISO routes with the same granularity as CAT execution reports; the ability to report allocations to other broker-dealers without reporting an FDID; rejections of modification and cancel requests that are not based on “too late to cancel”; and reporting of the RFQID field. The Working Group continued its discussion of partial cancels. The Working Group reviewed new FAQs U29 and U30 relating to the reporting of TIDType in Allocation events. The Working Group reviewed draft ETF scenarios. The Working Group discussed how to report when receiving (or sending) multiple cancel requests for a single order.
- FIF CAT CAIS Working Group. The CAT CAIS Working Group reviewed new Reporting Scenario 3.8 relating to ending an erroneously reported FDID. The Working Group reviewed guidance from FINRA CAT on the following topics: reporting of designated beneficiaries; reporting for shareholders, members or trust beneficiaries with trading authorization; the customerStartDate, customerEndDate and customerEndReason fields; FDIDs that are over-reported during the LTID phase; and reporting for entity account holders. The Working Group reviewed draft FIF member comments and questions for FINRA CAT relating to reporting registeredRepCRD and branchOfficeCRD and reporting for mass transfer of FDIDs across CAT Reporter firms. The Working Group reviewed issues and questions from FIF members relating to customerType values for Natural Person and Legal Entity customers, removing information that was erroneously reported to CAIS, validating SSNs and CAIS reporting for UGMA/UTMA accounts. The Working Group continued its discussion of Mass Transfer of FDIDs across CAT Reporter Firms and reviewed NASD Notice to Members 02-57, “Bulk Transfer of Customer Accounts”. The Working Group reviewed FIF member responses to the FIF survey on key open issues for CAIS.
Eduard Kotlyar