broker-dealers | Oyster Consulting

As Arbitration Cases Increase Expert Witness Demand Rises

July 11, 2018

The number of FINRA arbitrations continues to rise, with a 40% increase in new arbitrations in the last year, and a 29% increase from 2016. Of the thousands of cases filed each year the majority involve customer complaints. Because the matters in dispute often involve technical, industry-specific issues, the use of expert witnesses is increasingly […]

What is Digital Mining? – Behind the Distributed Ledger Curtain

June 28, 2018

What is Digital “Mining?” Blockchain or distributed ledger technology is a shared ledger, duplicated across a network of computers or operators of “nodes” on the network, typically referred to as “Miners”. Blockchain secures the data using encryption and the decentralized manner of retaining individual records across a wide group of operators of nodes, so that […]

Practical Considerations for Firms with Clients in the Digital Assets Markets

June 21, 2018

As the popularity of digital assets/distributed ledger technology piques the interests of investors worldwide, firms registered with the SEC, FINRA, CFTC, NFA and the states must be prepared to determine if and how much they are interested in permitting their clients to participate in the volatile digital asset market. If so, as with all other […]

Digital Assets – Are You Ready?

June 12, 2018

The securities and futures industries have a long history of creating, distributing, and trading new and innovative products and asset classes. Innovation is not without risk and successful firms have typically introduced disciplined processes to achieve compliance within existing regulations, even when there are gray areas. For broker-dealers, the suitability rule (2111) is the guiding […]

Blockchain Technology – Transforming Global Business Activities

June 7, 2018

For most people the term ‘blockchain’ is synonymous to ‘cryptocurrency,’ largely due to media coverage of the wild value fluctuations of cryptocurrencies like Bitcoin and block.one’s recent Initial Coin Offering (ICO) of its token, EOS. But they are very distinct, and blockchain technology could be the far more important of the two. Once you understand […]

Digital Assets and State Regulatory Challenges

June 5, 2018

One of the challenges for firms regulated by states is the state’s autonomy to both draft and enforce their own laws It is important to be aware of the regulations in any states where you may be conducting business, including the offer or sale of digital assets. A review of state regulations reveals one common […]

Cryptocurrencies and the Regulatory Challenges Around Them

May 29, 2018

The complexity and global popularity of cryptocurrencies, or digital assets, has initiated cooperative efforts between the SEC and CFTC to understand and regulate these products. The agencies have jointly testified before Congress and displayed interest in developing meaningful regulations; both agencies have promised additional working groups to pursue joint regulations. On January 24, 2018, the […]

Cryptocurrencies – Time to Understand the Products, Risks and Benefits

May 22, 2018

Cryptocurrencies and the distributed ledger technology behind them are changing the way the world thinks about financial transactions, settlement, and trading. Just in the last few days, major Wall Street firms have announced trading desks to focus on cryptocurrencies and two major US exchanges, NYSE / ICE and NASDAQ, are rumored to be considering trading […]

Cryptocurrencies Could Change Product Purchasing, Trading and Tracking

May 15, 2018

Cryptocurrency and the distributed ledger technology behind many of these “coins” or “tokens” have the potential to completely change the way securities are created, distributed, and traded. They also hold the potential to change how purchases are made and assets are tracked. As with any significant leap that our industry takes, opportunities must be balanced […]

Ready or Not – May 11, 2018 FINRA Customer Due Diligence Requirements Are Here

May 10, 2018

FINRA recently published an updated version of its Small Firm Template: Anti-Money Laundering (AML) Program to address amended broker-dealer requirements under FINRA Rule 3310 and the Bank Secrecy Act (“BSA”). The amended Rule reflects the Treasury Department’s Financial Crimes Enforcement Network’s (“FinCEN”) adoption of the final rule, referred to as the Customer Due Diligence (“CDD”) […]

SEC Fiduciary Standards Update

April 19, 2018

The SEC Proposes Rules and Interpretations to Address Relationships Between Retail Investors and Investment Professionals The Securities and Exchange Commission (Commission) has been considering issues relating to retail investor relationships with investment professionals for several years. A study was undertaken following passage of the Dodd-Frank Act, resulting in certain recommendations in a 2011 report. However, […]

GDPR: Impacts on American Firms without EU Clients

March 15, 2018

Confirmation that your firm does not hold any EU resident’s (“data subjects”) data is the first step in complying with the new General Data Protection Regulation (“GDPR”), effective May 25, 2018. There will still be some decisions and changes awaiting you. Firms without any EU residents’ data will be impacted in three main ways: deciding if the […]

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