June 18, 2024 - FIF Back Office Committee Agenda
Meeting Details
- When: Tuesday June 18, 2024 11am et
Meeting Agenda
Spotlight: The Successful Implementation of T+1 (Bob Cavallo, DTCC)
- DTCC Updates
- FICC
- DTC Updates
- June 7, 2024: 20333-24 - Holiday Schedule: Independence Day 2024
- June 4, 2024: 20336-24 - Reminder: Upcoming Testing Opportunity of Enhancements to the PTS PAMM Function - Revised
- June 3, 2024: 20332-24 - Upcoming Changes to Corporate Actions Web (CA Web), ISO 20022 CANO Messages and Voluntary Reorg Instructions (VRI), PTOP PTS / PBS Bid Price Acceptance Rules
- May 30, 2024: B20324-24 - Development of Rapid Issuance (RI) Service – Timeline Update
- May 30, 2024: B20323-24 - Money Market Instrument (MMI) Program Transformation – Update
- May 20, 2024: 20195-24 - Holiday Schedule: Juneteenth 2024
- NSCC Updates
- June 17, 2024: A9443 - MF Info Xchange Service Enhancements
- June 14, 2024: A9428 - MF Info Xchange Service Enhancements
- June 12, 2024: A9444 - NSCC Business Continuity and Disaster Recovery – 2024 Testing Dates and Modified Mutual Funds Processing Schedule
- June 11, 2024: A9439 - AIP ENHANCEMENTS 2024
- June 7, 2024: A9441 - SECURE 2.0 & Money Market Reform - Enhancements
- June 5, 2024: A9440 - New York State Stock Transfer Tax
- MSRB
- June 6, 2024: 34-100291 - Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend MSRB Rule G-27, on Supervision, to Allow Eligible Dealers to Fulfill Their Internal Inspection Obligation of Certain Offices and Locations Remotely for a Pilot Period
- May 22, 2024: MSRB to Retire Select Interpretive Guidance Regarding Inter-Dealer Confirmation Disclosures
- SEC
- CAT Updates
- TMPG
- April 11, 2024: Meeting Minutes
- FINRA Updates
- TRACE
- SLATE
- June 10, 2024: 34-100305 - Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Adopt the FINRA Rule 6500 Series (Securities Lending and Transparency Engine (SLATE™))
- FIF Member Questions
- If you would like to submit anonymized questions for the group to discuss, email us at fifinfo@fif.com and we will include it on the next agenda.
- FIF Working Group Updates: Please click here to Join Working Groups
- CAT Transaction Reporting
- Recent Developments
- The compliance date for reporting the new handling instructions for auctions is July 1
- On May 20, 2024 the SEC issued an exemptive order extending from July 31, 2024 to July 31, 2026 the exemption for reporting NIA RFQ responses to CAT
- FIF areas of focus
- On March 21 FIF submitted an exemptive request letter to the SEC relating to linkage of representative orders to customer orders and linkage of order fulfillments to representative and principal orders
- On March 21 FIF submitted an exemptive request letter to the SEC on port settings; the exemptive request letter incorporates by reference the points made by FIF in a January 25 letter to the SEC
- On May 7 FIF submitted a comment letter in support of the CAT NMS plan amendment filed by the CAT Plan Participants to reduce CAT operating costs
- On May 14 FIF members participated in a meeting with SEC, CAT Plan Participant and FINRA CAT representatives on linkage of representative orders to customer orders and linkage of order fulfillments to representative and principal orders
- FIF is currently hosting Working Group calls every Tuesday at 1 pm ET to draft a revised exemptive request relating to rep order linkage
- Recent Developments
- CAT Billing
- Recent Developments
- On January 2 and 3 FINRA and the other SROs submitted rule filings with the SEC relating to the collection of CAT fees from industry members
- On January 17 the SEC published notices for each of these rulings
- On February 13 the notices were published in the Federal Register
- FIF Areas of Focus
- On March 4 FIF submitted a comment letter to the SEC focused on CAT billing and reconciliation
- Recent Developments
- CAT CAIS
- Recent developments
- Full CAIS went live on May 31, 2024
- FIF areas of focus
- With Full CAIS now live, the FIF Working Group is focused on revisiting potential enhancements to the CAIS reporting system previously submitted by FIF to FINRA CAT
- Recent developments
- Rule 605
- FIF is currently hosting Rule 605 Working Group calls every Tuesday at 1 pm ET to draft a supplemental comment letter in response to the SEC’s March 6, 2024 amendments to Rule 605
- FINRA Rules 6151 (centralized reporting of Rule 606(a) reports) and 6470 OTC Routing Reports
- FIF has hosted Working Group calls to discuss implementation issues relating to FINRA Rule 6151, including documentation and guidance published by FINRA
- FIF members are awaiting further guidance from FINRA on FINRA Rule 6470
- TRACE and MSRB RTRS
- On April 22 the SEC published Orders Instituting Proceedings in response to the rule filings by FINRA and the MSRB to reduce -- from 15 minutes to one minute – the timeframe for reporting corporate, agency and muni bonds to TRACE and the MSRB RTRS system
- On May 17 FIF submitted a comment letter in response to the SEC’s Orders Instituting Proceedings
- SLATE Reporting Systems for Securities Loans
- On May 1 FINRA submitted a rule filing with FINRA to establish the new SLATE (Securities Lending and Transparency Engine) reporting system for securities loans
- On June 10 FIF hosted a call to review the Participant Specification for SLATE recently published by FINRA
- Short Positions and Short Activity Reporting
- On June 14 FIF submitted a comment letter to the SEC relating to implementation of the SEC’s new Form SHO reporting requirements
- Fractional Shares on the TRF
- On March 22 FINRA published a Trade Reporting Notice for an upcoming change to allow for reporting of fractional share transactions to the TRF and ORF
- In connection with the FINRA Trade Reporting Notie, the SIAC and UTP plans published updated technical specifications to provide for dissemination of fractional share trades
- These changes will take effect no earlier than the first quarter of 2025
- FIF has hosted a Working Group call to review the FINRA notice and the updated SIAC and UTP documentation
- On May 16 FIF submitted a letter to FINRA with comments and questions relating to the implementation of this new reporting requirement
- CFTC Large Trader Reporting
- On April 30 the CFTC adopted changes to its large trader reporting requirements
- FIF has scheduled a Working Group call for June 20 to discuss the CFTC’s recent amendments to this reporting requirement
- OFR Repo Reporting
- On May 6 the Treasury Department’s Office of Financial Research adopted a new requirement for firms that exceed specified thresholds to report repos that are executed bilaterally and not centrally-cleared (NCCBR repos)
- FIF has hosted calls to review and discuss the new OFR rule and the associated documentation published by the OFR
- FIF plans to submit a letter to the OFR by end-of-day on June 14; the letter identifies various issues and questions relating to the implementation of this new reporting requirement
- Compliance
- FIF hosted a call on June 6 to discuss implementation of the FINRA requirements relating to Residential Supervisory Locations
- Tax Information Reporting Working Group
- The Tax Information Reporting Working Group met on 4/18 where Wolters Kluwer presented on amendments to the Section 871(m) regulations applying the Section 871(m) withholding tax on “dividend equivalent payments” to long U.S. equity-linked derivative positions that have a “delta” of .8 or greater
- The next meeting will be in mid-late July where the focus will be on IRS initial draft of Form 1099-DA for reporting sales of digital assets under IRC Section 6045
- Cybersecurity Working Group
- Matt Weinberg of CISA presented on May 23 on the Current Threats to the Financial Industry. The group also covered some notable releases from FINRA and the NSA.
- Data & Technology Committee
- FIF Industry Solutions Offering
- FIF Retail Execution Quality Statistics
- FIF Regulatory Initiatives Tracking Site - (Requires FIF Website Login)
- FIF Monthly Reports
- Market Data Capacity Statistics – (Requires FIF Website Login)
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Next Meeting Date: July 16, 2024 @ 11am ET
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FIF URL: www.fif.com
- CAT Transaction Reporting
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