Global Trustee and Fiduciary Services Bite-Sized Issue 10 2024

15 QUICK LINKS CBDC CRYPTOASSETS FINTECH LIBOR TRANSITION OPERATIONAL RESILIENCE PRIIPS SUSTAINABLEFINANCE/ESG T+1 ASIA/PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2024 Further, the SEC adopted amendments to Rule 610 of Regulation NMS to reflect the new lower minimum pricing increment under Rule 612, address distortions associated with access fees and rebates under the existing access fee caps, address potential conflicts of interest, and increase the transparency of exchange fees, rebates, and other forms of remuneration. The amendments reduce the access fee caps for protected quotations in NMS stocks that are priced USD1.00 or more to USD0.001 per share. For protected quotations in NMS stocks priced less than USD1.00 per share, the access fee cap will be 0.1 percent of the quotation price per share. In addition, Rule 610 will now require exchanges to make the amounts of all fees, rebates, and other forms of remuneration determinable at the time of execution. Finally, to expedite the availability of information about the best prices for smaller-sized orders, the SEC accelerated the implementation of previously adopted definitions related to round lots and odd-lot information. These definitions were approved by the SEC in 2020, but their implementation has been delayed. In addition, the SEC adopted an amendment to the odd-lot information definition to require the identification of the best priced odd-lot orders that are available in the market. The amendments will become effective 60 days after the publication of the adopting release in the Federal Register. For Rule 612, Rule 610, and the round lot definition, the compliance date will be the first business day of November 2025. For odd-lot information, the compliance date will be the first business day of May 2026. Link to Final Rule here Link to Fact Sheet here CFTC Approves Final Rule Regarding Exemptions fromCertain Compliance Requirements for Commodity Pool Operators, Commodity Trading Advisors, and Commodity Pools On 12 September 2024, the CFTC published a final rule that amends CFTC Regulation 4.7, a provision that provides exemptions from certain compliance requirements for commodity pool operators (CPOs) regarding commodity pool offerings to qualified eligible persons (QEPs) and for commodity trading advisors (CTAs) regarding trading programs advising QEPs. The final rule amends various provisions of the regulation that have not been updated since the rule’s original adoption in 1992. Specifically, the final rule: 1. Increases the monetary thresholds outlined in the “Portfolio Requirement” definition that certain persons may use to qualify as Qualified Eligible Persons; 2. Codifies exemptive letters allowing CPOs of Funds of Funds operated under Regulation 4.7 to choose to distribute monthly account statements within 45 days of the month-end; 3. Includes technical amendments designed to improve its efficiency and usefulness for intermediaries and their prospective and actual QEP pool participants and advisory clients, as well as the general public; and 4. Updates citations within 17 CFR Part 4, and throughout the CFTC’s rulebook, to reflect the new structure of Regulation 4.7. The final rule will be effective 60 days after publication in the Federal Register. CPOs and CTAs must comply with the increased Portfolio Requirement thresholds in Regulation 4.7(a) by six months after publication in the Federal Register. The optional monthly account statement reporting schedule for Funds of Funds operated under Regulation 4.7 is available to their CPOs as of the final rule’s effective date, with compliance required upon election of that schedule by the CPO. Link to Federal Register here