In a recent notice, the Securities and Exchange Commission (SEC) announced that the Cboe BYX Exchange, Inc. proposed changes to its rules to align with a conditional exemption granted by the SEC. These changes affect how the Exchange handles allocation reporting requirements in their Consolidated Audit Trail compliance rules. The revisions include redefining an "Allocation Report" and only requiring reports when shares or contracts are allocated to client accounts. This approach aims to reduce reporting burdens on brokers while ensuring regulators have the necessary information to monitor trade allocations.
Simple Explanation
The people who make trading rules, called the SEC and Cboe BYX Exchange, are making it easier for trading companies to tell them who bought what stocks, so it's less work for the companies, but the important information still gets to the people who keep an eye on how trading works.