Rules and Regs

Congress Readies Short-Sale Rules

Congress is likely to add at least three new short-sale rules to the Securities Exchange Act of 1934 as part of its overhaul of financial services regulation.

FINRA Proposal Riles OTC Market

A proposal by FINRA to expand its business of collecting and disseminating quotes in over-the-counter equities by creating a "quotation consolidation facility" is under fire from OTC dealers and the largest OTC quote service.

SEC Porposal: Real-Time Dark Pool Reporting Spooks Industry

Sellside and buyside firms are worried that the Securities and Exchange Commission's proposed plan for dark pool reporting could hurt institutional investors by enabling others to game their flow.

Trading Tax Proposal in Congress Rankles Street

A bill introduced by Rep. Peter DeFazio, D-Ore., to tax trades on stocks and derivatives has trading executives uneasy, but in fighting mode. "I'm not pleased with the progress of this bill in Congress," Bob Greifeld, chief executive at Nasdaq OMX, said at a recent meeting with investors, sponsored by Goldman Sachs.

SEC Proposal: Some Doubt IOI Rules Will Yield More Quoting

A Securities and Exchange Commission proposal intended to limit brokers' off-board trading is unlikely to drive more orders to the public markets, industry officials contend.

CBOE and ISE Fight Flash Ban

The CBOE and ISE are fighting a regulatory push to ban flash orders in the marketplace.

SEC's New Head of Trading

The SEC named Robert W. Cook, a partner at law firm Cleary Gottlieb Steen & Hamilton, as the new director of the Division of Trading and Markets.

SEC to Regulate Nasdaq's Co-Location

Nasdaq OMX, at a time of intense suspicion surrounding high-frequency trading practices, has consented to allow the SEC to regulate its co-location services.

Dark Pools Under the Gun

Proposals by the Securities and Exchange Commission could crimp the growth of dark pools that aren't fully dark and that don't execute blocks.

SEC Scrutinizing Actionable IOIs

The SEC is taking a close look at the order messages sent out by dark pools to other trading systems.

SEC Plans Concept Release

The SEC plans to issue a concept release this fall to explore recent developments in the marketplace against the backdrop of an increasingly technology-dominated trading environment.

SEC OKs Penny Pilot Expansion

The SEC approved NYSE Arca's proposal to expand the so-called "penny pilot" whereby options trade in penny increments.

Brokers Warned About Phony IOIs

The Financial Industry Regulatory Authority warned broker-dealers not to misrepresent so-called natural indications of interest they send out to institutions.

Regulators Want Pre-Trade Checks

Brokers sponsoring direct access to exchanges and ECNs are being prodded to step up their pre-trade surveillance.

SEC Proposes Ban on Flash Orders

The SEC in September proposed to eliminate a loophole in a prominent industry rule that would, in effect, ban marketable flash orders on equities and options exchanges.