FINRA
Margin Requirements for Exchange-Traded Notes
https://www.finra.org/rules-guidance/notices/19-21
Pursuant to FINRA Rule 4210(f)(8)(A), FINRA is establishing higher strategy-based margin requirements for exchange-traded notes (ETNs) and options on ETNs in light of the complex nature of these products. The new requirements for initial and maintenance margin are detailed below.
In addition, FINRA is clarifying that ETNs and options on ETNs are not eligible for portfolio margining under FINRA Rule 4210(g).
FINRA Reminds Firms of Their Obligations Regarding TRACE Reporting
https://www.finra.org/rules-guidance/notices/trade-reporting-notice-071919
FINRA reminds members of their obligation to have systems or processes in place to determine whether a transaction in a TRACE-Eligible Security has occurred and is, therefore, reportable, even if it was not included on the TRACE security master list at the time of the transaction. In those circumstances, members should contact Market Operations to add the TRACE-Eligible Security to the security master list and report the transaction to TRACE.
Regulation Best Interest
https://www.finra.org/rules-guidance/notices/19-26
FINRA reminds members of the Securities and Exchange Commission’s (SEC’s) adoption of a best interest standard of conduct for broker-dealers and a relationship summary (Form CRS) delivery obligation, and provides an SEC email address where members may submit questions about the new requirements. As more fully described below, the SEC encourages firms to actively engage with SEC staff as early as possible as questions arise when planning for implementation. Firms may send their questions by email to IABDQuestions@sec.gov. FINRA also will assist members in their implementation of the best interest standard in various ways.
Guidance Regarding Member Firms' Supervisory Obligations when Participating in Investment-Related Activities with Municipal Clients
https://www.finra.org/rules-guidance/notices/19-28
FINRA is issuing this Notice to remind member firms of their supervisory obligations under FINRA Rules 3110 (Supervision) and 3120 (Supervisory Control System) if they hold or transact in customer accounts owned by municipal entities or obligated persons (municipal clients), as defined in Section 15B of the Securities Exchange Act of 1934 (Exchange Act), and participate in investment-related activities with municipal clients, such as recommending or selling non-municipal securities products to such municipal clients. Under these circumstances, member firms are obligated to determine if such activities require registration as a municipal advisor.
SEC
https://www.sec.gov/rules/final/2019/bhca-6.pdf
Section 13 of the Bank Holding Company Act of 1956 (BHC Act),1 also known as the Volcker Rule, generally prohibits any banking entity from engaging in proprietary trading or from acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with a hedge fund or private equity fund (covered fund).2 The statute expressly exempts from these prohibitions various activities, including among other things:
Solicitations of Interest Prior to a Registered Public Offering AGENCY: Securities and Exchange Commission. ACTION: Final Rule
https://www.sec.gov/rules/final/2019/bhca-7.pdf
Solicitations of Interest Prior to a Registered Public Offering
https://www.sec.gov/rules/final/2019/33-10699.pdf
A new communications rule under the Securities Act of 1933 that permits issuers to engage in oral or written communications with certain potential investors, either prior to or following the filing of a registration statement, to determine whether such investors might have an interest in a contemplated registered securities offering:
MSRB
MSRB Amends Professional Fee for Municipal Advisors
http://msrb.org/~/media/Files/Regulatory-Notices/Announcements/2019-16.ashx??n=1
To advance the goals of an equitable, sustainable financial model, on September 11, 2019, the Municipal Securities Rulemaking Board (MSRB) filed a proposed rule change with the Securities and Exchange Commission (SEC) to modify the fee charged under MSRB Rule A-11, on assessments for municipal advisor professionals.1 The amendments to Rule A-11 increase the annual municipal advisor professional fee to $1,000 from $500 over a two-year phase-in period.
