Financial Industry Entry Qualifications: NASDAQ and ICE Review
Explore the registration and qualification processes for the Nasdaq Stock Market (NASDAQ) and the Intercontinental Exchange (ICE) in the financial industry. Understand the criteria, timelines, and appeals involved in becoming a member of these prominent exchanges.
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Presentation Transcript
Overview of Financial Industry Entry Qualification Processes Part II Gibson Hull Associate Corporate Counsel CWG/MCWG July 25, 2019
Introduction Part I: ERCOT provided CWG with a review of registration/qualification requirements/processes for the following organizations within the financial sector: U.S. Commodity Futures Trading Commission (CFTC) National Futures Association (NFA) U.S. Securities and Exchange Commission (SEC) Financial Industry Regulatory Authority (FINRA) Texas State Securities Board (TSSB) Chicago Mercantile Exchange (CME) Chicago Board of Trade (CBOT) New York Mercantile Exchange (NYMEX) Commodity Exchange (COMEX) Part II: Review the following organizations: The Nasdaq Stock Market (NASDAQ) The Intercontinental Exchange (ICE) Review next steps 2 PUBLIC
The Nasdaq Stock Market (NASDAQ) The second largest stock exchange in the world behind the New York Stock Exchange Registration: General information gathering Criminal, financial, regulatory, bankruptcy, and civil judicial disclosures Any other information deemed necessary by NASDAQ Qualifications: Must be a FINRA registered broker dealer Application Review: Timeline: Reasonable time not to exceed 45 days from filing date Appeals: Reviewed by an Exchange Review Council with discretionary review by the Exchange Board 3 PUBLIC
The Intercontinental Exchange (ICE) Company that owns numerous exchanges including the New York Stock Exchange (NYSE) and ICE Futures U.S. (IFUS) IFUS Membership Registration General information gathering Criminal, financial, regulatory, bankruptcy, and civil judicial disclosures Any other information requested by ICE Qualifications Be a natural person at least twenty-one (21) years of age Be of good character, reputation and business integrity with adequate financial resources and credit to assume the responsibilities and privileges of membership Application Review Application includes consent to a background check Timeline: As long as necessary Appeals Membership Committee Trading without IFUS Membership Status as an IFUS Member is not required to obtain trading access. Individuals can apply for trading access after receiving authorization from an IFUS Clearing Member (typically large banks), provided such access complies with all laws, rules, regulations, etc. 4 PUBLIC
Next Steps ERCOT Development of Objective Criteria Credit Requirements Past Acts Criminal Civil/Regulatory Injunctions, sanctions, discipline, complaints Length of the look-back period (e.g., 10 years) Applicability and Scope: Who MP type E.g., Principals, Officers, 10% ownership, Individuals with authority to transact/bind MP When Proactive Application/Disclosure Background Check Continued Obligation Attestation Material Change Retroactive Appeals Process 5 PUBLIC
