Information Memo - FINRA - Rules and Regulations

More documents

Recommendations

Info

Theresa Reynolds of FINRA at (646) 315-8567, or Debra German of FINRA at (646)315-8467.NYSE Alternext Daily Program Trading Report (“DPTR”) ReportingCurrently, under NYSE Rule 132B, NYSE member organizations are subject to tradereporting obligations for program trading. NYSE Alternext member firms that are notcurrently NYSE member firms will not be subject to DPTR reporting obligations. NYSERegulation expects to issue separate guidance in the form of an Information Memoregarding NYSE member firms’ DPTR reporting obligations following the relocation ofNYSE Alternext.NYSE Crossing Session IIUnder NYSE Rule 907, the Off-Hours Trading Facility ("OHTF") consists of foursessions. NYSE Alternext listed securities will be executable in Crossing Session I,which permits the execution of single-stock, single-sided closing price orders andcrosses of single-stock, closing price buy and sell orders. The availability of CrossingSession II for NYSE Alternext listed securities will be described at a later date.Crossing Session II currently allows NYSE members and member organizations tocross program trading orders in NYSE listed securities between 4:00 p.m. and 6:30 p.m.based on the aggregate price of the program. Matched buy and sell orders for aminimum of 15 NYSE listed stocks may be transmitted to the Exchange for execution inCrossing Session II. These orders are transmitted via the EFP detailing the total numberof stocks, total number of shares and total dollar value. NYSE Alternext listed securitieswill not be executable on Crossing Sessions III and IV. For additional information on theOHTF please review Rule 907 and NYSE Information Memo 05-57. For additionalquestions concerning Crossing Sessions please contact Aleksandra Radakovic,Managing Director, NYSE Market Surveillance, at (212) 656-4144, or Michael Graham,Director, NYSE Market Surveillance, at (212) 656-4519.Electronic Blue Sheet (“EBS”) ReportingUnder NYSE Alternext Rules 410A and 342.23, NYSE Alternext firms have a continuingobligation to make automated submissions of trading information including reports oftheir customer, employee, and proprietary trading data via the EBS System uponrequest. These requirements are comparable to existing Amex requirements underAmex Rule 153. In requiring these submissions, NYSE Alternext will be acting jointlywith the other members of the Intermarket Surveillance Group. Securities executed onNYSE Alternext should be assigned an exchange code value of “B” which is the currentAMEX code. For additional questions related to the EBS System, please refer to theNYSE Alternext Rules 410A and 342.23, NYSE Information Memos 06-48 and 88-22 orcontact John Kroog, Director, NYSE Market Surveillance, at (212) 656-6532, or LisaNeuner, Director, NYSE Market Surveillance, at (212) 656-5393. For technicalquestions, please contact Venkata Sreeram of NYSE Regulatory Systems at 212-656-2579 or at vsreeram@nyx.com.Internal Investigation Reporting RequirementsNYSE Alternext Rule 342.21 requires members and member organizations to haveprocedures that are "reasonably designed" to identify proprietary, employee andemployee-related trades "that may violate" federal securities laws and NYSE Alternextrules prohibiting insider trading and manipulative and deceptive devices. Additionally,member and member organizations are required to subject such trades in Alternextlisted securities and related financial instruments to these procedures and to conductinternal investigations of the potentially violative trades that the firm has identified after
applying its procedures. NYSE Alternext Rule 351(e) requires members and memberorganizations to report NYSE Alternext Rule 342.21(b) "internal investigations" inquarterly filings. Although not every trade subjected to a firm inquiry or review will resultin a reportable Rule 342.21(b) internal investigation, when a firm subjects a trade to alevel of review sufficient to constitute a Rule 342.21(b) internal investigation, membersand member organizations must, without exception, report in one or more Rule 351(e)filings every Rule 342.21(b) internal investigation that is commenced. The reportingrequirement includes investigations which are commenced and completed within thesame calendar quarter and result in no further action being taken must be reported in aRule 351(e) filing.For additional information, please review NYSE Alternext Rules 342 and 351, as well asNYSE Information Memo 06-06. The Quarterly Insider Trading Attestations are requiredto be delivered on a quarterly basis to the Financial Industry Regulatory Authority(“FINRA”). The appropriate department is Risk Oversight & Operational Regulation,which is located at 20 Broad Street, 23rd Floor, New York, NY 10005. For additionalquestions concerning Internal Investigation Reporting please contact AleksandraRadakovic, Managing Director, NYSE Market Surveillance, at (212) 656-4144, orMichael Graham, Director, NYSE Market Surveillance, at (212) 656-4519. Foradditional information about the form and the submission process please contact DebraGerman, Credit Regulation, FINRA at (646) 315-8467.Regulation NMS Rule 606 ReportingNYSE Alternext members and member organizations will continue to be subject to bestexecution obligations. Regulation NMS Rule 606 routing information requires, amongother things, that broker-dealers make available a report on their routing of non-directedorders in covered securities. In addition, if requested by a customer, broker-dealersmust disclose the venue to which the customer's orders were routed for execution andthe execution time of the transactions that resulted from the orders. NYSE Alternext isa separate market center from NYSE and applicable reporting must accurately reflectthe applicable marketplace. Member organizations will thus be required to segregatetrades executed at different exchanges, including instances where firms route to the onedestination and receive more than one exchange value on the executions.NYSE Alternext trades and quotes will be disseminated with the market centerparticipant ID “A” in the consolidated market data streams, reflecting the fact that NYSEAlternext and NYSE will continue to be separate registered securities exchanges.Following new trading systems enhancements, the Common Customer Gateway(“CCG”) will automatically direct incoming order, cancel and cancel/replacementmessages to the appropriate executing market destination (“N” for NYSE and “A” forNYSE Alternext.)For this and other Regulation NMS-related requirements please see NYSE InformationMemo 07-44. For additional information please contact David De Gregorio, ChiefCounsel, NYSE Market Surveillance, at (212) 656-4166, or Peter Bon Viso, SeniorCounsel, NYSE Market Surveillance at (212) 656-5621. For business questions relatingto the Amex equities integration, please contact your NYSE Relationship Manager. Fortesting arrangements and/or other questions, please contact the Service Desk at 1-866-873-7422 or send an email to support@nyx.com with “NYSE Alternext” in the subjectline.
Page 1 and 2: Information MemoMarket Surveillance
Page 3 and 4: To ensure compliance with the FESC
Page 5: executed. The Form 81-O submission
Page 9 and 10: Rule 98NYSE Alternext is adopting a

Information Memo - FINRA - Rules and Regulations

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?