FINRA Seeks to Require Registration of Persons Who Develop Algorithmic Trading Strategies

FINRA has filed a proposed rule with the Securities and Exchange Commission (“SEC”) that would require associated persons of FINRA member firms who are responsible for the design, development or significant modification of an algorithmic trading strategy to register with FINRA. The proposed rule would also require the registration of persons who are responsible for the supervision of the day-to-day activities of such algorithmic trading strategies.

The rule would require covered persons to pass a qualification examination and register with FINRA as a Securities Trader. By requiring same, FINRA seeks to facilitate compliance with securities regulation obligations by firms engaged in automated trading activities. Further, as registered Securities Traders, individuals registered under the proposed rule must be designated to a registered principal with the authority to carry out supervisory obligations of the firm.

Credit Suisse Refuses to Pay Deferred Compensation to Brokers

In the fall of 2015, Credit Suisse announced that it intended to wind down its United States private banking operations. Shortly thereafter, Credit Suisse announced that it had entered into an exclusive recruiting arrangement with Wells Fargo that would allow Credit Suisse’s brokers, and their clients, to move to Wells Fargo by early 2016.

Due to concerns with some of the employment terms required by Wells Fargo, and concerns about Wells Fargo’s capabilities with respect to certain segments of business, many brokers joined firms other than Wells Fargo. Recently, according to multiple sources, Credit Suisse has notified brokers who did not join Wells Fargo that they would not be paid deferred compensation due them from Credit Suisse.

If you are a broker that has been affected by Credit Suisse’s decision not to pay deferred compensation, the attorneys at CMF would be happy to speak with you regarding your rights.