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SEC

SEC’s New Rule 606: Execution Transparency At a Cost

For brokerage trade operations, compliance and IT managers, providing fund managers with more granular details about where and how their trades were executed to fulfill the US Securities and Exchange Commission’s enhancements to Rule 606 could turn into a major operational headache. At issue is how much data broker-dealers have readily available, how much they […]

Chairman Jay Clayton and Director Brett Redfearn Preview Potential Further Equity Market Structure Reforms—Exchange Market Data Business Model Targeted

Earlier this month, SEC Chairman Jay Clayton and Division of Trading and Markets Director Brett Redfearn engaged in a public dialogue on equity market structure issues.  In addition to reviewing three equity market structure initiatives adopted by the SEC in 2018 (the transaction fee pilot,

Consolidated Audit Trail: Those Messy Data Linkages

US brokerage operations managers are quickly turning their attention to how they will meet the cumbersome requirements for data linkages now that the Financial Industry Regulatory Authority (FINRA) has been stepped in at the eleventh hour to operate the new consolidated audit trail (CAT). The initial phase-in of CAT — 2a and 2b– starting in […]

Status of Financial Regulatory Leadership Changes

As the new Congress gets underway, we have updated our brief deck summarizing the leadership and staffing changes among federal financial regulators, including announced nominations, confirmations, resignations and expiring terms.  The first slide summarizes the state of play for the agencies’ principals; the later slides provide a deeper look on an agency-by-agency basis, including select senior staff.  We intend to continue to update this resource from time t

AML Exams: Data Quality Takes Center Stage

Data integrity and integration. The popular terms used in trade and post-trade operations are quickly making their way into the world of anti-money laundering compliance as financial firms prepare for more stringent regulatory exams. With the number and value of fines growing, buy-side and sell-side firms are returning to the basics of evaluating their data […]

Wyoming’s Digital Custody Law: Taming the Wild West?

Wyoming’s attempt to establish banks as custodians for digital assets sounds great, but it might not be enough to convince institutional investors to take the plunge, caution some legal experts. The reason: without explicit rules from either federal securities or banking regulators, attorneys aren’t willing to tell any registered investment advisor it is on solid […]

‘Exchanges owe us answers’ says IEX as it discloses market data and connectivity costs

Investors Exchange (IEX) has publicly disclosed its costs of producing market data and connectivity, suggesting that incumbent exchanges could be marking up charges for such services by as much as 4,000%.

Major US institutions to rival NYSE and Nasdaq with launch of ‘low-cost’ exchange

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U.S. Regulators Announce BSA/AML Enforcement Actions Against U.S. Broker-Dealers

As 2018 came to a close, U.S. financial regulators continued to pursue anti-money laundering (“AML”) enforcement actions against financial institutions, announcing monetary penalties against and resolutions with three U.S.

SEC approves controversial transaction fee pilot for stock exchanges

The US securities regulator has approved a controversial pilot scheme that would see major restrictions on pricing across the biggest stock exchanges.

The Securities and Exchange Commission (SEC) unanimously approved the one-year programme, known as the transaction fee pilot, as part of a review of the ‘maker-taker’ trading system, which typically provides a rebate to traders adding liquidity to an order book, with an access fee then charged when liquidity is removed.

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