Validus in Practice (ViP)

At the end of January, the Canadian Securities Administrators (CSA) announced that the Investment Industry Regulatory Organization of Canada (IIROC) and the Montréal Exchange (MX) have entered into a Memorandum of Understanding (MoU) regarding cross-market surveillance. The primary objective is to “assist in the development, administration, coordination and fulfillment of the cross-market surveillance mandate.” The …

The Canadian Securities Administrators Signals Increased Attention on Cross Market Surveillance Read More »

On February 9, 2022, FINRA published the eagerly awaited 2022 Report on FINRA’s Examination and Risk Monitoring Program (the “Report”). The purpose of the Report is to provide firms with information concerning recent examination findings, outline effective practices observed by FINRA during their exams and generally highlight key considerations for firms’ compliance programs. At a …

FINRA Issues Annual Guidance Regarding Compliance Programs Read More »

On January 27, 2022, the Hong Kong Securities and Futures Commission (SFC) and the Australian Securities and Investments Commission (ASIC) jointly released a circular that detailed their observations following a collaborative thematic review into the governance arrangements and internal controls within the FX business of selected SFC and ASIC licensed firms. The review covered a …

Necessary Controls to Risk-Manage Cross-Border Trading Practices within FX Read More »

On January 21, 2022, FINRA issued Regulatory Notice 22-04 reminding broker-dealers of the requirements under Rule 5310.01 to execute marketable customer orders fully and promptly.  The definition of what “prompt” means has never been clearly delineated in the rule itself although industry practice, based upon the timing requirements of other order handling-type rules, has been …

FINRA Issues Notice Regarding the Proper Handling of Marketable Customer Orders Read More »

On November 18, 2021, the Federal Energy Regulatory Commission (FERC) Office of Enforcement issued its annual report on enforcement. The report details FERC’s enforcement priorities and summarizes enforcement actions taken over the previous year. FERC’s 2021 priorities were largely the same as 2020, with a continued focus on market manipulation and market conduct. However, the …

FERC 2021 Annual Report on Enforcement: A Commitment to Vigorous Enforcement Read More »

On December 14, 2021, the NYSE proposed a change to rule 7.35B relating to the cancellation of MOC, LOC and Closing IO Orders. NYSE rules have historically allowed the cancellation of MOC, LOC and Closing IO orders to correct legitimate errors between 3:50 PM and 3:58 PM.  Attempts to cancel at 3:58 PM or later …

NYSE Proposing Rule Change to Longstanding Market-on-Close (“MOC”)/Limit-on-Close (“LOC”) Order Handling Requirements Read More »

On 16 November 2021, the UK FCA released Market Watch 68, a newsletter focusing on and revisiting the topic of order and trade capture. As far back as Market Watch 48 in June 2015, there have been concerns surrounding the effectiveness and integrity of data used for market surveillance with consideration for firms to design …

UK: Market Watch 68 Advises Firms to Know Their Traders Using Capture, Record and Surveillance Techniques Read More »

On September 28, 2021, the European Securities and Markets Authority (ESMA) released the “MiFID II/MiFIR Review Report on Algorithmic Trading.” While there were no fundamental issues uncovered by the report – and the regulatory regime for algorithmic trading as set out in MiFID II and MiFIR has for the most part delivered its objectives – …

ESMA Algorithmic Trading Recommendations You Should Know About Read More »

On June 22-23, Eventus co-hosted an event, Shining a Light on Digital Asset Markets 2021, with ADAM.  One focus area was the institutional adoption of digital assets, with the need for regulatory clarity standing out as a consistent theme. SEC Commissioner Peirce channeled that concern, stating, “My complaint has been that too much of the conversation …

Don’t Be a Poster Child for Regulatory Enforcement Read More »

“As we grow our virtual asset trading business, what type of surveillance do we require?” It is a question we consistently hear from prospects in the APAC region. We know that regulators generally want to shine a light on virtual asset service providers (VASPs) by requiring registration and compliance with relevant local regulations. With over …

APAC: The Surveillance Requirement Dilemma Read More »