Wall Street Letter Volume XLV Issue 25 | Page 3

NEWS 1 – 7 AUGUST 2013 POST-TRADE Published by Pageant Media London Thavies Inn House London EC1N 2HA T [phone] F [phone] EDITORIAL Jeanene Timberlake Managing editor [phone] [email protected] Sean Creamer Reporter [phone] [email protected] Gwyn Roberts Group head of content [phone] [email protected] Indira Peters-DiDio Data manager [phone] [email protected] PRODUCTION Claudia Honerjager Head of production c.honerjager@ pageantmedia.com New York 1441 Broadway Suite 3024, NY 10018 T [phone] F [phone] COMMERCIAL Lucy Churchill Group commercial manager [phone] [email protected] Stefano Giacoia Content Sales Manager [phone] [email protected] EVENTS Beth Hall Head of events [phone] [email protected] DISTRIBUTION Fay Muddle Circulation manager [phone] [email protected] PAGEANT MEDIA Charlie Kerr Chief executive Printed by The Manson Group OCC supports fax for more member backup communications In tightening its rules on back-up communications for its members, the OCC is expanding the number of firms that could choose to use a fax machine for positions or collateralrelated communications, according to a regulatory filing from the utility. The entity has long required its members to contract with at least two internet service providers in order to access its systems. Members also have an obligation to have a back-up method as well based on the size of the firm. OCC rules mandate the largest firms (by transactional volume) must have a T1 line in to the OCC, while mid-tier firms have had the option to choose between a T1 line or an ISDN connection. Firms with low levels of cleared volumes and that are clearing only one account type can choose between an ISDN connection, accessing OCC equipment (if an OCC operational center is in the firm’s city), or transmitting data via fax. Now the utility said it wants to put firms in just two categories, those among the top 25 of its members by transactional volume and all other firms. Firms in the top 25 will still be required to maintain T1 lines. All other firms will be allowed to choose between a T1 line, a fax, telephone, or access to a local OCC facility. The utility said it was making the change after reassessing risk following denial of service attacks on some firms. “Through this assessment, OCC has determined that its existing policy should be modified to ensure it is easily understood and properly implemented by the clearing membership,” it said. terminology, meaning that the scope of the required due diligence inquiry will have been changed and effectively broadened,” the letter stated. Specifically, it noted that the sixth question, which asks about past SEC or FINRA disciplinary action against the issuer or affiliates, refers to information a broker may not have considered relevant. It also said a response of “unknown” to the third question, which asks who the proceeds of the offering will benefit, could be considered to indicate that a broker is not fulfilling obligations related to suitability. Meanwhile, the Public Investors Arbitration Bar Association told the SEC it was in favor of the changes but wants them to be more stringent. Namely, the group’s letter suggested FINRA should add to the question about who proceeds will benefit, and who issues will be sold to. It also suggested the ?????????????????????????????????q??????t?((??((??() =9Q%9U???()M?????????????M??????M???????1???Q???????M???????()%MM8??????????? ??????A??????5?????1?????????????????? =AeI%!P?9=Q% ??9??????????????????????????????????????????????????????????????????????????????????A??????5?????e?????????????????? ?????????????????????????????????????????????? ???????1?????UM???????????Y?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????e?????()Q???????)?????????????????????????)]10?MQIP?1QQH((???????()Q???????????????????????????????????????????????????????U?????????????????????????????????????????????????????????????????()Q???5???????????????????????????????e???????????????????????????????????????????????????????????????????????????????I????????????????????????????????????????????????????????????????????I???????????q]????????????????%9I?e?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????t?????????q%9I???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????t?M???????M???????? ????????????????????????????????????%9I???????????????qmMu???????????????????????????????????????????????????????????((