FIF CAT Monthly Update Working Group. The Working Group reviewed guidance and updates from the CAT Plan Participants and FINRA CAT on CAT Transaction Reporting, CAT CAIS and CAT billing during the prior month. The Working Group reviewed the current areas of focus for FIF members and the current open issues for CAT Transaction Reporting, CAT CAIS reporting and CAT billing. FIF CAIS Working Group. The CAIS Working Group discussed the unavailability of the CAIS system from January 5 to January 8. The Working Group continued its review of the December 21 updates to the CAIS Technical...

FIF Back Office Committee; FINRA T+1 Rule Changes. The Back Office Committee reviewed applicable FICC, DTC, NSCC, SEC, MSRB, OCC, IRS and FINRA updates during the past month. During the call, FIF reviewed the recent rule changes adopted by FINRA to conform to T+1 and the requirement for same-day allocations. The Working Group also discussed how members plan to handle the scenario where a customer does not provide allocations by end-of-day. Please find the agenda here. FIF Front Office Committee. The Front Office Committee reviewed applicable updates and notices from the SEC, FINRA, FINRA...

FIF SEC Cyber, Reg SCI and Reg S-P Working Group. FIF hosted a call to review the SEC’s recent approval of a rule change by The Options Clearing Corporation (“OCC”) to enhance the cybersecurity obligations of OCC clearing members.  Compliance with FINRA Clock Synch Requirements for Trading Systems in the Cloud; Validation of Compliance with Trading Halt Requirements. At the request of FIF members, FIF hosted a call to discuss compliance with FINRA clock synch requirements for trading systems in the cloud (including for CAT) and validation of compliance with trading halt...

Guidance from the SEC and FINRA on Fully-Paid Lending from a Foreign Omnibus Account. The Working Group discussed guidance received by an FIF member from the SEC and FINRA on conducting fully-paid lending from a foreign omnibus account. FIF CAT Monthly Update Working Group Call. The CAT Monthly Update Working Group reviewed guidance and updates from the CAT Plan Participants and FINRA CAT on CAT billing, CAT Transaction Reporting and CAT CAIS reporting during the prior month. The Working Group reviewed the current areas of focus for FIF members and the current open issues for CAT...

Clock Synchronization Requirements for Debt Securities. FIF hosted a follow-up call to continue the prior FIF member discussion of implementing clock synchronization requirements for debt securities based on FINRA Rule 4590, Supplementary Material .02. Tax Information Reporting Working Group; Crypto, Digital Assets and Blockchain Working Group. Stevie Conlon, Robert Schwab and Anna Vayser of Wolters Kluwer reviewed the recent proposed IRS regulations for reporting digital asset transactions. Data and Technology Committee. The Data and Technology Committee reviewed capacity, latency and...

Clock Synchronization Requirements for Debt Securities. FIF hosted a call for FIF members to discuss implementing clock synchronization requirements for debt securities based on FINRA Rule 4590, Supplementary Material .02. FIF Front Office Committee. The Front Office Committee reviewed applicable updates and notices from the SEC, FINRA, FINRA CAT and the equity and option exchanges. FIF CAT Transaction Reporting Working Group. The CAT Transaction Reporting Working Group discussed a November 17 FIF call with SEC representatives on the implementation of CAT billing. The Working Group...

Margin Requirements for Covered Agency Transactions. Ignacio Sandoval of the Morgan Lewis law firm reviewed the new margin requirements for Covered Agency Transactions, which are scheduled to take effect on May 22, 2024. FIF invited the members of the FIF Back Office Committee and the FIF Financial Risk Regulations Working Group to participate on this call. Back Office Committee; Spotlight on T+1. The Back Office Committee reviewed applicable FICC, DTC, NSCC, SEC, MSRB, OCC, IRS and FINRA updates during the past month. The spotlight presenter was George Bollenbacher of Capital Market...

FIF Securities Lending Transparency Working Group. Ignacio Sandoval of the Morgan Lewis law firm completed a review of the SEC’s recently-adopted rule to require Reporting of Securities Loans. The Working Group discussed various implementation issues relating to the rule proposal, including how end-of-day should be defined, timestamp granularity, how spread-based pricing should be reported to FINRA and disseminated by FINRA, reporting on an “if-known” basis, fees to be charged by FINRA to cover the costs of developing and operating the reporting system, and reporting for rolling/evergreen...

FIF Short Sales / Reg SHO / Short Interest Reporting Working Group. The FIF Short Sales / Reg SHO / Short Interest Reporting Working Group reviewed and discussed the SEC’s recent adoption of a rule to require monthly reporting of short positions and short activity. During the call, FIF members identified a number of implementation challenges and areas where further guidance is required from the SEC. FIF CAT Monthly Update Working Group Call. The FIF CAT Monthly Update Working Group reviewed guidance and updates from the CAT Plan Participants and FINRA CAT on CAT billing, CAT Transaction...