In the first major trading and markets initiative under SEC Chairman Jay Clayton, on March 14, 2018, the SEC proposed to establish a transaction fee pilot program to study the effects of maker-taker fee structures. A pilot study was initially recommended by the SEC’s Equity Market Structure Advisory Committee in
Continue Reading SEC Proposes Equity Market Study: Beginning of the End for the Maker-Taker Model?

Responding to a 2016 request by the SEC (in consultation with the Treasury Department), FINRA recently reviewed the extent to which various FINRA rules apply to U.S. Treasury securities.  Following up on that analysis, on February 6, 2018, FINRA issued Regulatory Notice 18-05, requesting comment on whether it should
Continue Reading FINRA Seeks Comment on Applying Various Rules to U.S. Treasuries and Extending Certain Equity Market Rules to All Debt Securities

With virtual currency markets booming and bitcoin prices at record highs, U.S. financial regulators have been—each in its own manner—considering whether and how to regulate virtual currencies and related products.  Last week, the U.S. Commodity Futures Trading Commission (CFTC) announced that three futures exchanges—CME, Cboe Futures Exchange, and Cantor Exchange—self-certified
Continue Reading The CFTC Forges Ahead with Listed Bitcoin Derivatives

The Treasury Department’s recent report on capital markets regulation includes a robust discussion of equity market structure issues.  The report does not break new ground or raise issues that have not been debated previously at length, including by the SEC’s Equity Market Structure Advisory Committee (“EMSAC”).  That said, the report


Continue Reading Treasury Chimes in on Equity Market Structure

In the wake of a highly-publicized cybersecurity breach involving the SEC’s EDGAR system, SEC Chairman Jay Clayton has been in the hot seat at recent congressional hearings, fielding pointed questions as to whether the SEC should delay implementation of the Consolidated Audit Trail (“CAT”).  The SEC has not announced a
Continue Reading Security Concerns Prompt Questions Regarding Whether the SEC Should Delay the CAT

On September 27, 2017, Congress passed the Fair Access to Investment Research Act of 2017 (the “FAIR Act”), sending the bill to President Trump for his signature.  The FAIR Act instructs the SEC to amend its rules to ease various restrictions and burdens that broker-dealers face when issuing research reports
Continue Reading Congress Passes the FAIR Act, with New Tool to Nudge the SEC

Regulatory Considerations for Integrating a Brokerage Firm into a Corporate Group

The recent Davis Polk and Oliver Wyman webcast discussion on the regulatory issues faced when integrating a broker-dealer, is now available On Demand for your convenience.

The webcast reviews our memoon common regulation-driven integration considerations.

View the Webcast
Continue Reading Webcast: So, Now You Own a Broker-Dealer!

In a closely watched case, the Seventh Circuit last week affirmed the felony conviction of Michael Coscia, a New Jersey high frequency trader, rejecting his arguments that the anti-spoofing provision in the Commodity Exchange Act under which he was charged is unconstitutionally vague and that the evidence in the
Continue Reading Spoofing Rule Governing Commodities Trading Survives Constitutional Vagueness Challenge in the Seventh Circuit

On June 26, 2017, the full D.C. Circuit Court of Appeals split down the middle over whether the Securities and Exchange Commission’s (the “SEC’s”) appointment of Administrative Law Judges (“ALJs”) is consistent with the Constitution.  As detailed in a prior alert, panels of the Tenth and D.C. Circuit Courts
Continue Reading After Full D.C. Circuit Deadlocks, Circuit Court Split over Constitutionality of SEC Administrative Law Judges Likely Bound for Supreme Court

Decision Yesterday and Two Denials of Certiorari Today Decline to Apply American Pipe Tolling to Statutes of Repose Under Both the ’33 Act and ’34 Act

On June 26, 2017, the United States Supreme Court decided California Public Employees’ Retirement System v. ANZ Securities, Inc. (“CalPERS”), an important case that
Continue Reading Supreme Court Declines to Apply Class Action Tolling and Upholds Dismissal of Individual Securities Cases Filed After Expiration of Statutes of Repose