Tags: Capital Formation

In Episode 6, we speak with Kevin SampsonPresident, Equity Trading, TMX Group. Our conversation touches on a range of topics from throughout 2020, including the resilience of the markets during peak volatility: the surge in activity from retail investors and how that dynamic is playing out in Canada; the potential consequences of the recent U.S. elections on Canadian financial markets and ESG.

In his role, Mr. Sampson leads the trading businesses of TMX and has also served on several committees to help foster constructive dialogue regarding market structure and policy issues in Canada.

In Episode 5, we sat down with U.S. Rep. Bill Huizenga of Michigan, Ranking Member of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets. We covered the Congress’s early response to COVID 19; the rise of social unrest and how social media influences it; the SEC’s efforts to improve and modernize capital formation and Canada.

In Episode 2, we brought together Jacob Rappaport, Managing Director and Head of Global Equities at StoneX Group (formerly INTL FCStone) and Dan Zinn, General Counsel and Corporate Secretary for OTC Markets where he leads the company’s regulatory and policy making efforts to discuss the proposed amendments to Rule 15c2-11 in the Road to Modernize the OTC Market.

In September 2019, the SEC announced proposed amendments designed to modernize Rule 15c2-11 and enhance investor protection by requiring that current and publicly available issuer information is accessible to investors. The OTC market has seen significant technological improvements since the last substantive review by the SEC in 1991.

SEC Market Structure Speech on Issuers

The Nexus of Equity Market Structure and Investor Relations: Remarks at the 2019 Annual Conference of the National Investor Relations Institute

“..the Division of Trading and Markets is intensely reviewing a series of important questions and policy initiatives that I believe should be of great interest to issuers and their investors as they participate in the U.S. equity markets.” – Brett Redfearn, Director Division of Trading & Markets

Ms. Allison Lee, Confirmation

On Thursday, June 20th, The U.S. Senate by voice vote, confirmed Allison Lee  to serve as a Securities and Exchange commissioner, bringing the markets regulator back to full strength.

SEC Commissioner Peirce on Crypto & Grill

SEC Commissioner Hester Peirce discusses the role and responsibilities of the SEC, and how that impacts the crypto landscape with Crypto & Grill.

Read June newsletter here

STA Comment Letter

STA files letter with Senate Banking Committee on Capital Formation

STA supports Title IX of S.488 (115 th Congress) and S.2347 (115 thCongress), which would expand testing-the-waters to all issuers, and would level the playing field for issuers trying to compete for capital and provide benefits to investors by providing more time for them to make an investment decision. Here

STA files letter with SEC on no-action relief; MiFID II

STA believes that a meaningful number of market participants anticipate the Commission granting an extension on the existing “no-action” relief. Therefore, a decision to allow the relief to expire in July 2020 risks to be highly disruptive if firms are not provided adequate time to adjust to the regulatory regime. Expiration would have a particular impact on those broker-dealers who may decide to register their research departments as investment advisers to accommodate cash payments. Here

See STA February Newsletter here

Comment Letter: Senate Banking Committee: Capital Formation

The Security Traders Association (STA) appreciates the opportunity to provide comments on legislative proposals in advance of the February 28, 2019, Senate Committee on Banking, Housing, and Urban Affairs hearing on “Legislative Proposals on Capital Formation and Corporate Governance.” The STA comments are focused on the following provisions in S.488, the JOBS and Investor Confidence Act of 2018, as passed by the House in the 115th Congress:

  • Title IX, Encouraging Public Offerings (including similar companion legislation, S.2347, the “Encouraging Public Offerings Act” introduced in the 115th Congress);
  • Title XX, Main Street Growth (including companion legislation, S.3723 and H.R. 5877, the “Main Street Growth Act,” introduced in the 115th Congress);
  • Title XXIV, Improving Investment Research for Small and Emerging Issuers (including H.R. 6139 and S.3578, introduced in the 115th Congress); and,
  • Title XVIII, Options Markets Stability (including S.3283 and H.R. 5749, introduced in the 115th Congress).

Encouraging Public Offerings

Prior to the enactment of the Jumpstart Our Business Startups Act (JOBS Act), companies conducting public offerings could only meet with potential investors in time constrained meetings in the ten (10) days leading up to their IPO. This roadshow process did not allow sufficient time for issuers to provide a full description of their business model or for investors to properly research the company prior to investing. The JOBS

Read full letter here

House Financial Services Committee Hearing

House Financial Services Committee Hearing
“Implementation and Cybersecurity Protocols of the Consolidated Audit Trail”
The hearing will examine the status of the CAT’s implementation and the current adequacy of existing data security protections regarding the storage and use of CAT data by entities that are part of the CAT operating committee, the CAT plan processor, and the SEC. It also will examine whether additional cybersecurity protocols are necessary to properly safeguard collected data, including personally identifiable information (PII). More details here
See STA’s November Newsletter here

The Financial CHOICE Act

Dear Chairman Hensarling and Ranking Member Waters,

The Security Traders Association (“STA”)1 appreciates the opportunity to comment on the “Financial CHOICE Act of 2017” (H.R. 10).
STA’s comments will focus on the following…

Read full comment letter (PDF)>

Financial CHOICE Act of 2016

The Security Traders Association (“STA”)1 appreciates the opportunity to comment on the “Financial CHOICE Act of 2016” discussion draft. STA’s comments will focus on section 404 of Financial CHOICE Act relating to the fee structure funding the Securities and Exchange Commission (“Commission” or “SEC”).
Section 991 of the Dodd-Frank Act modified the funding sources of the Securities and Exchange Commission to one that relies exclusively on fees on equity securities and security futures transactions.

This was a departure from the Investor and Capital Markets Fee Relief Act enacted in 2002, which established a funding mechanism for the Commission through adjusted transaction fees (Section 31 fees), fees on registration of securities (Section 6(b)), fees on the purchase of securities by the issuer (Section 13(e)), and fees for certain proxy solicitations in corporate control transactions (Section 14(g)).

Read full comment letter here (PDF)>

Venture Markets & Senate Hearing on SEC Nominees

On March 16th, the STA hosted an Open Call on venture markets and the Main Street Growth Act (H.R. 4638) which would allow for the creation of venture exchanges. All attendees received a complimentary report on the Senate Banking nomination hearing for Lisa Fairfax and Hester Peirce to the Securities & Exchange Commission.


Cromwell Coulson
President, Chief Executive Officer and Director
OTC Markets


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