The SEC adopted amendments that impose additional conditions on the ability of a broker-dealer to publish a quotation for securities that are not listed on a national securities exchange. The amendments were published in the Federal Register.
In a new staff report, the SEC Division of Economic and Risk Analysis considered the interconnections among six separate U.S. credit markets, and how three distinct types of stresses in each of the markets affected the products and participants during the COVID-19 pandemic.
The SEC proposed amendments to regulations on alternative trading systems to improve the "operational transparency, system integrity and regulatory oversight" of those systems that trade in government securities.
FINRA proposed rules changes that would (i) shut down the OTC Bulletin Board Service, (ii) delete all related rules, and (iii) establish new requirements for alternative systems run by individual broker-dealers that disseminate identified broker-dealer quotations in OTC Equity Securities.
The SEC provided certain limited exemptive relief from the “locate” and "close-out" requirements under its short sale regulations. The relief was provided because of COVID-19 related intermittent suspension of physical securities processing by the Depository Trust Company .
FINRA requested comment on "pennying" - the practice of a broker-dealer executing a customer order at a price that matches or only slightly beats (e.g., by a penny) the best auction price from a third party in the corporate bond market.