FINRA issued the final podcast in its six-part series on Regulatory and Examination Priorities for 2015. The sixth podcast focuses on market integrity and addresses the following priorities: Supervision and Governance Surrounding Trading Technology FINRA stated that it is reviewing (i) firms' technology and related controls with an emphasis on "the development and ongoing supervision of algorithms," (ii) the segregation of duties among technology staff, (iii) firms' risk management, as well as their financial and operational controls, and (iv) the intraday monitoring of net capital. Algorithm

Shelly Luisi has been named Associate Director in the SEC Division of Corporation Finance. She begins her new role in September and will oversee the work of the Disclosure Standards Office. See: SEC Press Release. R elated news: SEC Names New Regional Director of Fort Worth Office (August 18, 2015).

FINRA proposed a rule change to expand the scope of its alternative trading system ("ATS") transparency initiative. FINRA seeks publication of the remaining equity volume executed over the counter ("OTC") by FINRA members. The proposed expansion would include non-ATS electronic trading systems and internalized trades. The proposal was filed with the SEC and published in the Federal Register. According to FINRA, the proposal will not only expand FINRA's initiative but also help to give market participants and investors a better understanding of a firm's OTC trading. See: 80 FR 50347. R elated

The Financial Services Institute ("FSI") issued a report estimating the costs of the DOL's proposed fiduciary rule. The FSI commissioned Oxford Economics, an independent global advisory firm, to review the impact of the proposed DOL rule amending the definition of "fiduciary" for retirement accounts. Titled: "Economic Consequences of the US Department of Labor's Proposed New Fiduciary Standard," the report estimates that the proposed rule will cost the financial services industry close to $3.9 billion in total startup costs – nearly 20 times the cost estimated by the DOL. It also suggests that

An investment advisor, broker-dealer firm agreed to settle SEC charges that it "failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information" and "failed to adopt and implement policies and procedures to prevent and detect principal transactions conducted by an affiliate." The failures resulted from a breakdown in the information flow of the firm's technology for trade review. The breakdown was not detected by the firm's personnel. See: SEC Order; SEC Press Release.