Trading & Markets Counseling

  • Representing a leading options market maker in successfully petitioning the SEC to exercise its discretion to review action taken by the Division of Trading and Markets staff approving a controversial capital-raising plan proposed by the Options Clearing Corporation and opposed by industry participants.
  • Representing a leading global derivatives market-place with respect to securities regulatory matters before the SEC Division of Trading and Markets.
  • Advising on establishing a "robo adviser."
  • Assisting and advising a broker-dealer regarding Regulation SHO, ATS and NMS requirements.
  • Represented FINRA and several national securities exchanges in drafting proposed SRO pilot plan to increase tick size.
  • Advising a prime broker on the establishment of a registered investment company margin lending platform.
  • Representing leading fixed income ATSs regarding TRACE reporting issues.
  • Representing a fixed income pricing service in commenting on FINRA and MSRB rule proposals.
  • Advising multiple market participants with clearing agency regulatory issues.
  • Advising on Regulation SHO Rule 204 compliance.
  • Advising a buy-side and sell-side market participants on Regulation SHO compliance matters.
  • Advising broker-dealers and asset managers regarding Regulation M Rule 105 compliance.
  • Assisting in the preparation of CEO of financial institution for testimony related to high frequency trading and equity market structure issues before the Senate Permanent Subcommittee on Investigations and the Senate Banking Committee.
  • Advising an expert network firm regarding policies relating to the protection of confidential, material, non-public information.
  • Advising client on matters relating to digital currency-denominated securities trading.

Looking Forward

Last year indeed proved to be a lively mix of issues and spirited discourse in the trading and markets space. In addition to the appointments of Hester M. Peirce and Robert J. Jackson Jr. to fill two vacant SEC Commissioner posts, Elad Roisman was appointed as a Commissioner to fill the vacancy created by the departure of Commissioner Michael Piwowar. The Commission’s Division of Trading and Markets (T&M) continued to tackle thorny issues, such as market data reform, the tick size pilot, transaction fees, and market quality for thinly traded stocks. FINRA and other SROs continued to focus on algorithmic trading, code development, and market access controls.

We expect to see more of the same in 2019. Commission rulemaking will continue to be leaner, less prescriptive, and more deferential to market forces. That said, we believe Commission rulemaking will be more procedurally constrained and more intensely scrutinized as a result of the recent change in control of the House of Representatives. Cybersecurity and FinTech issues will continue to receive a good deal of attention, and will likely continue to be key issues covered during regulatory examinations.