Newsletter June 2006 - Index |
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Source NTM |
Type of Firm |
Topic/Business Type |
Summary Description |
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General Securities |
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The NASD provided interpretive guidance on the obligation of members to report to the Trade Reporting and Compliance Engine (TRACE) transactions in TRACE-eligible securities, including the exercise or settlement of options Continued… |
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General Securities |
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In this notice the NASD provides guidance on Rule 2111 which prohibits members from trading ahead of customer market orders under certain circumstances. Continued… |
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NASD Rule 3012 requires members to have in place a system to test and verify that their supervisory procedures are reasonably designed with respect to the activities of that member and their firm. Continued… |
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Mutual Funds |
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On December 27, 2005, the SEC approved a proposed rule change to make permanent Rule 2210(c)(3) and Interpretive Material 2210-5 (“IM 2210-5”) concerning bond mutual fund volatility ratings. Previously, the NASD had interpreted their rules so as to prohibit the use of bond fund volatility ratings in sales material. Continued… |
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All |
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Effective 3/6/06 the SEC has approved amendments to the AML program rule (NASD Rule 3011) and provided interpretive material to clarify and provide guidance on the rule. Continued… |
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All |
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All |
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NASD Rule 3013 requires each member’s CEO, or equivalent officer, to certify annually that there are processes in place to establish, maintain, review, modify and test the firm’s policies and procedures. Continued… |
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All |
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The SEC has approved a new Form BR that will replace the current Schedule E of Form BD. Continued… |
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General Securities |
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Compliance date is July 10, 2006. Members are required to capture and report both the time an order is received from the customer, and the time the order is received at the trading desk or trading department (if those times are different). Continued… |
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General Securities |
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Regulation SHO requires participants of a registered clearing agency to “close out” failure-to-deliver positions in threshold securities that have persisted for 13 consecutive settlement days by purchasing securities of like kind and quantity. |
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General Securities |
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Reminds members of SEC Rule 3380, approved 2/24/06, which prohibits splitting any order or execution into multiple smaller orders or executions for the purpose receiving greater financial rewards such as rebates, commissions, gratuities, credits, etc. This rule was effective May 25, 2006. |
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All |
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The concerns are present when employees of a customer acting in a fiduciary capacity solicit substantial charitable contributions from members with whom they intend to or have under contract. Continued… |
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General Securities |
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The NASD is seeking comments on publicly disseminating Buy/Sell and Customer/Deale information currently being reported through TRACE. Only members currently reporting transitions through the TRACE are asked to comment. |
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All |
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The NASD is reminding FINOPs of their obligations under NASD Rule 1022 and issuing guidance to FINOPs who work part-time, work off-site or hold multiple registrations. Continued… |
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To the FINOP clients of Broker Dealer Compliance: We want to assure our clients that this Notice to Members merely re-iterates the existing NASD rule in relation to FINOP responsibilities. As a result of the publication of this Notice to Members, however, we may institute some changes with your firm. For example, these changes may include a requirement for on-line banking access. |
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