Insights
Options Market Participants Face New Regulatory Inquiries; Tried and True Remedies Are the Solution
Derivatives, Securities Joanna FieldsAs families get through back-to-school checklists, Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) are similarly going through their own regulatory check lists for options market participants. There are several new regulatory sweeps and enforcement inquiries being sent out now to options market participants, including questions about suitability, payment for order flow (PFOF), surveillance, and regulation of short sales issues.
Strategic Compliance Assessments Turn Fire Hoses Into Straws
Securities Joanna FieldsFinancial Industry Regulatory Authority (FINRA) examiners are asking Consolidated Audit Trail (CAT) questions in broker-dealer annual exams this year, which in turn are raising concerns internally about how best to respond and how to comply.
The SEC’s Six Month Review of Reg BI and Form CRS
Patomak Post Laura MagyarThe Securities and Exchange Commission and the Financial Industry Regulatory Authority indicated that firms appear to be on the right track with Reg BI and Form CRS compliance, but also offered requirement reminders and observations of industry practices to aid firms in meeting regulatory expectations. Around the rules’ implementation, the SEC’s Office of Compliance Inspections and Examinations and FINRA have been conducting exams to understand and assess how firms are complying with the rules.