Wall Street Letter VOL. XLV, NO. 35 - Nov. 7, 2013 | Page 3

7 – 13 NOV 2013 NEWS MARKET STRUCTURE Published by Pageant Media London Thavies Inn House London EC1N 2HA T [phone] F [phone] New York 1441 Broadway Suite 3024, NY 10018 T [phone] F [phone] EDITORIAL Jeanene Timberlake Managing editor [phone] [email protected] COMMERCIAL Lucy Churchill Group commercial manager [phone] [email protected] Sean Creamer Reporter [phone] [email protected] Emily-Jane Stapleton Corporate licence manager [phone] [email protected] Gwyn Roberts Group head of content [phone] [email protected] EVENTS Beth Hall Head of events [phone] [email protected] Indira Peters-DiDio Data manager [phone] [email protected] PRODUCTION Claudia Honerjager Head of production c.honerjager@ pageantmedia.com Sub-editor Eleanor Stanley Sub-editor Luke Tuchscherer Sub-editor DISTRIBUTION Fay Muddle Circulation manager [phone] [email protected] PAGEANT MEDIA Charlie Kerr Chief executive Printed by The Manson Group SIFMA asks FINRA for more hybrid reporting details The Securities Industry and Financial Markets Association is asking for more details from FINRA with regards to its proposal to dictate where trade details for certain hybrid securities should be reported. The trade association submitted a comment letter to the regulator on the issue last month, citing additional concerns related to the impact the mandate might have on the market overall. FINRA’s proposal, submitted to the SEC in September, raised the issue of trade reporting it mandates for reporting of over-the-counter (OTC) debt securities to the TRACE facility and OTC equity securities to the OTC Reporting Facility (ORF). It noted firms make reports on new hybrid securities that are developed but because they are hybrid by nature the appropriate reporting facility may be unclear. To eliminate confusion, FINRA proposed to specify treatment for two categories of hybrid securities, depositary shares, which it said should be reported to the ORF, and capital trust, or trust preferred, securities, which will be reported to TRACE. It said it would not require mem- 01 ISSN# 726-98790 © 2013 Pageant Media Ltd. All rights reserved. COPYRIGHT NOTICE: No part of this publication may be copied, photocopied or duplicated in any form or by any means without Pageant Media’s prior written consent. Copying of this publication is in violation of the Federal Copyright Law (17 USC 101 et seq.). Violators may be subject to criminal penalties as well as liability for substantial monetary damages, including statutory damages up to $100,000 per infringement, costs and attorney’s fees. The next WALL STREET LETTER will be available the week of 12/02/13 The upcoming issue will feature our regular industry news coverage. Until then, news items will be available on our website at www. wallstreetletter.com CONTINUED... This includes whether that would require dark pools or alternative venues to have their own regulatory category or another solution. “All of these things need to find a balance so we get a more transparent market so it’s possible to execute trades outside the lit markets but to also make sure there is a level playing field,” he added. Paul Schott Stevens, president and bers to correct old reports in order to fall in l [?H?]H?]??\]Z\?[Y[???]?[??X?[??[?\?H?X?\?]Y\??\?YY?\?H????[\?Y??X?]?B?]\?????H?]??ZY[[?\???]?Q?PH?ZYH?[??][?\????\??[???X?]\?H?S??x?&\?[?\??]][?\??\??[??\??&]\X\??????Y\??\??[?X\??]?X?X?K??X?\??\?Y?H?X?]??B??\?X?\?\?X???\?H[???[Y[???\]Z\?H8?'X?[Z?H?X]Y[?8?'K???'\]Z]H?YH?\?[???\?[\???X?\?H???\?H??\?Y?Y??[?H?[??X?[??[??X?\?]Y\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??