Cboe EDGX Exchange, Inc. has proposed changes to its compliance rules to align with an exemption from certain allocation reporting requirements granted by the Securities and Exchange Commission (SEC). This involves adjusting how the Exchange handles allocation reports by requiring brokers that perform allocations to client accounts to submit these reports. The goal is to simplify reporting obligations, reduce costs for brokers, and ensure that relevant trading data is efficiently reported without burdening brokers who don't perform allocations. The proposed changes aim to maintain regulatory effectiveness while making the process more practical for industry members.
Simple Explanation
The Cboe EDGX Exchange is changing some rules to make it easier and cheaper for brokers to report certain trading activities, by only asking those who actually handle client trades to send in reports, so everyone can focus on important data without getting too overwhelmed.