DC Spring Update & Turning Compliance Burdens into Competitive Insights

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March 2021

STA Washington DC Spring Update

Wednesday, April 21

Registration Now Open!

Join us on April 21, as we host legislators and congressional staff from Capitol Hill and business leaders from across our markets for this one-day virtual event. They will discuss the state of legal and regulatory affairs affected by the change in administration, including:

Pending legislation that could impact our industry
New priorities at the SEC, CFTC and other regulators
Potential responses to the GameStop controversy
Growing momentum around FTT proposals and why they would be detrimental to our industry
And much more!

STA Insights

Here’s How to Win Business by Turning Compliance Burdens into Competitive Insights

By Michael Post, Executive Vice President, BXS

Between amendments to Rule 606 and the implementation of the Consolidated Audit Trail in the U.S., as well as the implementation of MiFID II in Europe, achieving compliance is now a daily focus for firms of all sizes, ramping up cost pressures. Regulation will continue to pose compliance challenges and exacerbate cost pressures, and there’s not much anyone can do about it. The best approach is to use these reports to effectively create hyper-focused strategies based on what clients and competitors are revealing.

From the Hill

Robinhood Business Model Under Fire at GameStop Hearing in Congress

Democrats took aim at aspects of zero-commission broker Robinhood at a House Financial Services Committee hearing Wednesday, calling on regulators to consider banning the practice of payment for order flow and to reign in so-called gamification features of the app which critics say encourage users to trade more frequently than is financially wise.

Gary Gensler, Biden’s Pick to Head SEC, Approved by Senate Committee

President Biden’s nominee to oversee Wall Street firms and public companies, Gary Gensler, cleared a key hurdle to Senate confirmation, garnering support from two Republicans in a vote on March 10. The Senate Banking Committee voted 14-10 in favor of sending Mr. Gensler’s nomination for chairman of the Securities and Exchange Commission to the Senate floor for confirmation.

SEC Announces Enforcement Task Force Focused on Climate and ESG Issues

Consistent with increasing investor focus and reliance on climate and ESG-related disclosure and investment, the Climate and ESG Task Force will develop initiatives to proactively identify ESG-related misconduct.

FINRA Promotes Stephanie Dumont to Head Market Regulation and Transparency Services

FINRA announced that it has promoted Stephanie Dumont, formerly Senior Vice President and Director of Capital Markets Policy for FINRA's Office of General Counsel, to the role of Executive Vice President and Head of Market Regulation and Transparency Services, effective immediately. Dumont will report to President and CEO Robert W. Cook and join FINRA’s Management Committee.

STA in the News

brought to you by Forefront Communications

Reddit GameStop Squeeze Is a Game Changer

The events of GameStop and “this massive collision of the world of finance and social media did unveil and flush out some inefficiencies that we have in our marketplace that I think the [SEC]…” as well as the Financial Industry Regulatory Authority, the Depository Trust Co. and other agencies “are going to have to look at longer-term,” said Jim Toes, president of the Security Traders Association, in an early February podcast held by STA.

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Help Wanted: Capital Markets and Fintech Experts Explain How the Pandemic Is Transforming Hiring and Job Seeking

“At the outset of the pandemic, we did not expect that much hiring would occur, if any,” said Jim Toes, President and CEO of Security Traders Association, a trade organization that serves individuals employed in the financial services industry. “We were wrong: hiring did occur. Despite the very real and unique challenges that still exist today, our industry has remained tremendously resilient and flexible throughout the pandemic, and that extends to its staffing practices.”

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STA Women in Finance

To the Women of STA

by Julie Andress

KeyBanc Capital Markets & STA WIF Co-Chair

Finding the proper balance on how we allocate our precious time can be overwhelming. For the vast majority of us, finding enough time for family, friends and career is challenging enough, but if you add community service to the equation, words like “impossible” and “sorry, I can’t” come to mind. It appears community service finishes a distant fourth, if it finishes at all, not because of a lack of desire, but with busy lives, it can be hard to find time to volunteer. However, the benefits can be significant to you and your community. Even helping with the smallest tasks can make a real difference to organizations in need, and dedicating your time as a volunteer helps you expand your network and boost professional and social skills.

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Open Call Replay

brought to you by Clearpool

Listen again to STA's March 17 Open Call:

Early Reactions to House Hearing on

GameStop and Recent Market Volatility, Part Two

The House Financial Services Committee held its second hearing on GameStop and recent volatility on March 17. The hearing was titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide, Part II.

Immediately after this hearing, STA hosted an Open Call in which STA President Jim Toes interviewed Adam Inzirillo, Senior Vice President, Head of North American Equities, Cboe Global Markets to discuss key takeaways.