23 November, 2020
Working Group Updates 11/23/2020
23 November, 2020
- FIF CAT Tech Specs Working Group and FIF CAT Committee. The FIF CAT Tech Specs Working Group reviewed and discussed updates to the Reporting Scenarios issued by FINRA CAT on November 6, including updated scenarios relating to RFQs, floor broker trading, trailing stop orders and allocations. The Working Group reviewed items where additional information is required in the Technical Specifications and Reporting Scenarios documents. The Working Group discussed CAT rejections of orders for a new option series received prior to the first day of trading. The Working Group reviewed comments and questions submitted to FINRA CAT on November 12 and 17. The Working Group reviewed and discussed the FINRA CAT “Phase 2c Cutover and November 2020 Technical Specifications Overview” webinar. The Committee reviewed and discussed new and updated FAQs from the SROs relating to multi-leg orders, stop, stop limit and trailing stop orders, various types of conditional and contingent orders, Order Effective events, and the handling instruction for smart order routing. FIF submitted additional comments to FINRA CAT on the Technical Specification and Reporting Scenario documents based on the FIF Working Group and Committee discussions.
- FIF CAT CAIS Working Group. The FIF CAT CAIS Working Group discussed specific concerns relating to the reporting of CAIS data for Authorized Traders and relief to be requested from the regulators. The Working Group discussed the need for allowing multiple customer records for the same person or entity. The Working Group completed and submitted responses to FINRA CAT relating to account and customer types and inconsistency management.
- FIF Emerging Technologies Working Group. The Working Group was treated to a spotlight presentation from Evan Schnidman of EAS Innovation. The presentation detailed how novel technologies like AI, ML and NLP are being utilized in financial research and investment decision making. The presentation also touched on the rate of technology adoption by both the buy and sell sides, as well as how the use of technology is impacting the flow of assets between active and passive managers.
Eduard Kotlyar