Corporate & Financial Weekly Digest

Latest from Corporate & Financial Weekly Digest

The Financial Industry Regulatory Authority (FINRA) has published its 2021 Annual Budget Summary (Budget Summary), which outlines how FINRA plans to deploy resources in 2021 to meet its various regulatory responsibilities. As described in the Budget Summary, FINRA’s 2021 operating revenues are projected to be lower than 2020 operating revenues, due to the unique set of circumstances arising from the COVID-19 pandemic that contributed to increased revenues due primarily to higher trading volumes and a…
Beginning on June 5, the Financial Industry Regulatory Authority Dispute Resolution Services (FINRA DRS) will permit in-person hearings to resume at most of its hearing locations for in-person arbitration and mediation proceedings. In-person hearings scheduled for Augusta, Boca Raton, Buffalo, Detroit, Philadelphia, Providence and Wilmington are postponed through July 30 and all affected parties will be contacted by FINRA DRS to discuss virtual hearing options or to reschedule in-person hearings. FINRA DRS also detailed safety…
The Commodity Futures Trading Commission (CFTC) has announced that its Energy and Environmental Markets Advisory Committee (EEMAC) will hold a meeting on June 3 at 9:00 a.m. (ET). At this meeting, the EEMAC will examine how derivatives markets can facilitate the transition to a low-carbon economy, including the status of carbon reduction through cap-and-trade and other carbon trading market mechanisms. The EEMAC will also hear a staff presentation on recent events in the energy markets.…
On May 11, the Financial Conduct Authority (FCA) updated its webpage on changes to regulatory reporting during the COVID-19 pandemic. The FCA explained on its webpage in February 2021 that firms could apply for a two-month extension to the deadline for FIN-A (annual report and accounts) submissions due up to and including July 31. This February 2021 entry has now been removed and replaced with a May entry, which makes it clear that for this…
Earlier this month, the Securities and Exchange Commission approved amendments (the Amendments) to New York Stock Exchange (NYSE) rules that require listed companies to obtain shareholder approval of certain private placements and equity issuances to “related parties,” as well as requirements related to transactions between a listed company and certain related parties. In particular, the Amendments, which were initially proposed in December 2020 and subsequently modified, modified Sections 312.03, 312.04 and 314.00 of the NYSE…
On April 14, the Commodity Futures Trading Commission’s Market Participants Division (MPD) and Division of Market Oversight (DMO) jointly issued CFTC Staff Letter 21-10 to extend, for a limited time, parts of the temporary no-action relief granted in response to the COVID-19 pandemic, which expired on April 15. CFTC Staff Letter No. 21-10 extends until September 30 the following relief: Relief from Introducing Broker (IB) Registration and Location Requirements for Floor Brokers (FBs). MPD is…
On March 31 and April 1, the Financial Industry Regulatory Authority (FINRA) proposed rule changes that would extend the expiration date for temporary amendments that (1) provide relief to individuals functioning as a principal or operations professional, (2) provide relief to FINRA staff from certain enforcement and procedural requirements, and (3) allow virtual hearings. Specifically, the proposal would extend: SR-FINRA-2020-026, which would extend the 120-day period that certain individuals can function as a principal or…
On March 19, the Financial Conduct Authority (FCA) published a statement announcing that it is establishing temporary measures on RTS 27 reports on execution quality. Commission Delegated Regulation (EU) 2017/575 contains regulatory technical standards (RTS) specifying the content, format and periodicity of the data published by execution venues on the quality of execution of transactions. The FCA refers to these RTS as RTS 27. The next set of these reports will be based on pre-Brexit…
On March 15, the European Securities and Markets Authority (ESMA) announced its decision not to renew the requirement for holders of net short positions in shares traded on an EU regulated market to inform the relevant national competent authority (NCA) if the position reaches, exceeds or falls below 0.1 percent of the issued share capital (the Press Release). The 0.1 percent net short reporting requirement expires on March 19. Therefore, the last reporting where this…
On March 3, the Securities and Exchange Commission’s Division of Examinations announced its examination priorities for 2021. These priorities include a greater focus on climate-related risks, conflicts of interests for brokers and investment advisers, and attendant risks related to FinTech. In a statement by Acting Chair Allison Herren Lee, the Division announced it will enhance its focus on climate and environmental, social and governance- (ESG-)related risks by examining proxy voting policies and business continuity plans…