U.S. – FINRA Fine CS Options Reports

On 16 May, FINRA fined Credit Suisse $200k for option reports.

  • Bank fined $200k, of which $75k payable to FINRA and install compliance controls.
  • For reporting options positions to large options positions reporting (LOPR) system.
  • Alleged Violations
  • Bank failed to report over the counter (OTC) options positions to the LOPR system.
  • Reported positions with inaccurate tax ID or tax type fields in millions of instances.
  • Failure to report, effected opening trades in single security for customer accounts,
    acting in concert that exceeded position limit on both sides of market for 107 days.

Australia – ASIC Short Selling Relaxation

On 14 May, ASIC sought feedback on proposed short selling rule.

Proposals

  • Grant legislative relief to allow market makers of certain exchange-traded products
    to naked short sell units in exchange traded fund or managed fund making market.
  • Relief to allow naked short sales of unissued products during a deferred settlement.
  • Also for naked short sales connected to IPO sell downs with special purpose vehicle.
  • Change relevant time that short positions are calculated, remake sunsetting orders.
  • After ASIC aims to consolidate all short selling-related relief into a single instrument.

Effectiveness

  • ASIC invites submissions by 20 June, aim for consolidated instrument before 1 October.