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

The lively mix of “knowns” and “unknowns” that will shape trading and markets regulation in 2018 makes projections a risky business. What we know is that Hester Peirce and Robert L. Jackson Jr. have been appointed to fill the two vacant Commissioner posts, the Commission’s Division of Trading and Markets (T&M) has a new Director and FINRA’s new CEO has been in his position for less than a year. Complicating all of this is the relative inaction, in general, on Capitol Hill. We might project that Commission rulemaking will be leaner, less prescriptive, and more deferential to market forces. That said, new Commission rulemaking may well be more procedurally constrained and more intensely scrutinized than it has been over the previous decade. We also see cybersecurity and FinTech issues receiving a good deal of attention. On a separate front, the Commission is likely to focus on SRO fees and economics. A petition for rulemaking seeking more disclosure related to exchange market data fee filings, as well the DC Circuit’s remand related to the OCC’s capital plan, may reveal whether and how the new T&M leadership impacts the Commission’s review of SRO and market data questions. Finally, exchanges will be reacting to the Second Circuit’s ruling that SRO immunity does not apply to exchanges facing fraud claims arising out of Michael Lewis’ Flash Boys.