After approximately 16 years of publication, today is our final official edition of Corporate & Financial Weekly Digest. On behalf of our attorneys, editors and all of our authors, we are proud to have been a reliable source on trending legal issues. Please stay tuned, as Katten will continue to provide timely, educational updates to our clients and subscribers via advisories and other future publications ..read more

On May 25, the Financial Industry Regulatory Authority (FINRA) published the 2021 FINRA Industry Spotlight (Industry Spotlight), which is FINRA’s annual statistical report covering the brokerage firms, registered representatives and market activity that FINRA regulates. The 2021 edition includes new statistics on US Treasury volume and corporate financing filings. The Industry Spotlight also includes 2020 data on the size and geographic distribution of the firms FINRA regulates, the number of individuals in the industry, equity and fixed income trading activity, and how firms marketed their pr ..read more

The Financial Industry Regulatory Authority (FINRA) has published its 2021 Annual Budget Summary (Budget Summary), which outlines how FINRA plans to deploy resources in 2021 to meet its various regulatory responsibilities. As described in the Budget Summary, FINRA’s 2021 operating revenues are projected to be lower than 2020 operating revenues, due to the unique set of circumstances arising from the COVID-19 pandemic that contributed to increased revenues due primarily to higher trading volumes and a large number of public offerings. Operating expenses are anticipated to increase in 2021 over ..read more

On May 25, the Commodity Futures Trading Commission announced that on June 9, from 10:00 a.m. to 12:00 p.m., the Agricultural Advisory Committee (AAC) would hold a public meeting via teleconference. At this meeting, the AAC will receive a report from the subcommittee that has been evaluating CFTC policy with respect to the implementation of amendments to enumerated agricultural futures contracts with open interest. The meeting also will include a discussion on global agricultural commodity derivatives contracts and other agricultural risk management issues. CFTC Announcement in the Federal Reg ..read more

On May 26, Commodity Futures Trading Commission’s Market Participants Division (MPD) published updated responses to frequently asked questions regarding CFTC Regulation 4.27 and Form CPO-PQR (FAQs). These FAQs update the 2015 FAQs that addressed issues on Form CPO-PQR from filing mechanics and deadlines to more technical questions. In October 2020, the CFTC adopted a Final Rule amending Form CPO-PQR and CFTC Regulation 4.27, the provision requiring Form CPO-PQR reporting. The updated FAQs reflect that Final Rule’s revisions and supersede the 2015 version. CFTC Press Release ..read more

On May 24, the National Futures Association (NFA) issued Notice to Members 1-21-16, announcing the effective date for NFA Member swap dealer and major swap participant dues increases. NFA Bylaw 1301 imposes annual dues on NFA Member swap dealers (SD) and major swap participants (MSP). The current annual dues amounts have remained unchanged, except for a reduction in MSP annual dues, since NFA established its swap regulatory program in 2013. Given the expansion of NFA’s swaps regulatory program over the past eight years and to fund its operations and maintain adequate reserves, NFA’s Board of D ..read more

The Securities and Exchange Commission is seeking comments on a Financial Industry Regulatory Authority (FINRA) proposal to adopt a Supplemental Liquidity Schedule (SLS), and instructions thereto, pursuant to FINRA Rule 4524. FINRA Rule 4524 provides in part that each member, as FINRA shall designate, shall file as a supplement to FOCUS Reports such additional financial or operational schedules or reports as FINRA may deem necessary. The proposed SLS, which would be filed as a supplement to the FOCUS Report, would be required to be filed by (1) each carrying member with at least $25 million in ..read more

On May 20, the European Securities and Markets Authority (ESMA) proposed to the European Commission (Commission) a permanent reduction to the threshold to notify net short positions on shares to EU national competent authorities (NCAs) from 0.2 percent to 0.1 percent. ESMA states that it examined the evidence obtained following its successive emergency decisions, which began in March 2020, to temporarily lower the notification threshold to 0.1 percent. ESMA’s analysis showed that a substantial amount of additional and essential information became available to NCAs through the reporting of net ..read more

On May 18, a speech by the European Commissioner for Financial Services, Financial Stability and Capital Markets Union was published outlining elements of the anti-money laundering (AML) and counter-terrorist financing (CTF) action plan that the European Commission (Commission) intends to present further and reform. The Commissioner explained that the presentation to deliver the proposed new EU AML and CTF framework would be delayed until July due to technical issues and the volume of measures. The presentation was initially planned for the first quarter of 2021. In the speech, the Commissione ..read more

On April 11, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 21-18 (Notice) in response to increasing reports from customers experiencing customer account takeover (ATO) incidents. These incidents involve bad actors using compromised customer information, including login credentials, to gain unauthorized entry to customers’ brokerage accounts. FINRA reported the increase in ATOs comes as more firms offer online accounts. FINRA published the Notice to remind members of their regulatory obligations to protect customer information. The Notice also summarizes the findi ..read more