On November 28, FINRA consulted on rules for market making payments. Retrospective review of rule on payment for market making to assess if effective. Outlined retrospective rule review process, and sought responses from questions. Restriction from Rule Review working of FINRA Rule 5250, which restricted payment for market making. Ban firm or associate accepting payment…
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U.S. DoL Delay of Fiduciary Rule
On November 24, DoL extended fiduciary rule exemptions by 18 months. Provided 18-month delay of applicability date of three exemption provisions in rule. Followed August 31, 2017 extension proposal when rule wasn't delayed. After a review of comments received, DoL adopted proposed delay without change. Exemptions Delay Extend transition period, delay applicability date from January…
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U.S. SEC Delay – FINRA CAT Replacement OATS
On 21 November, SEC designated longer period to take action, ending 27 January 2018. Background: On 15 May, FINRA proposed rules for retiring OATS due to CAT system. To eliminate order audit trail system (OATS) in FINRA Rule 7400, for CAT reporting. Amend FINRA electronic blue sheet (EBS) Rules 8211, 8213 to meet CAT…
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U.S. OFAC Sanctions Rules for Iran
On 20 November 2017, Treasury OFAC designated large-scale IRGC-QF counterfeit ring. Network of individuals and entities to help Iran's Revolutionary Guard Corps-Qods. Provided IRGC-QF) with counterfeit currency, in support of destabilizing activities. Used deception to circumvent EU export control restrictions, procured equipment. Printed counterfeit Yemeni bank notes of hundreds millions of dollars for IRGC-QF. IRGC-QF…
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U.S. FINRA Fines JPM $1.1 Trade Orders
On 13 September, FINRA fined JPMorgan $1.1mn for trade order system. J.P. Morgan Securities LLC fined in relation to order management systems (OMS). Alleged Violations Followed creation of separate OMS for cash institutional clients, and retail clients. Did not account for filter in old OMS causing over-advertisement of trade volume. Erroneously captured volume already advertised…
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Italy Consob Whistleblowing Powers
On 13 November, Consob proposed rules on whistleblowing protections. MiFID II requires firms to adopt procedures to enable staff report rule violations. Rules cover financial consulting firms, market operators and communication firms. Provisions have been extended to the operators of equity crowdfunding platforms. Firms are required to approval internal reporting systems by administrative board. Communication…
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