I N S P ECTION S AN D
No fraud is alleged in this SEC OCIE letter, which merely outlines routine 2015 examination priorities for national securities exchanges without naming any parties, citing dollar amounts, or filing charges.
The SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a guidance letter in January 2015 detailing its fiscal year examination priorities for national securities exchanges, focusing on compliance with prior regulatory orders, internal controls over regulatory functions, listing standards, options listing programs, IT controls, and Section 31 obligations. No specific entities or individuals are accused of misconduct, no financial penalties or dollar amounts are referenced, and no enforcement actions or charges are mentioned. The document explicitly states it is not legal advice and does not create any enforceable rights, serving solely as a risk-based planning tool for upcoming exams.
The SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a non-binding guidance letter on January 13, 2015, outlining its planned examination priorities for national securities exchanges in Fiscal Year 2015. These priorities include reviewing exchanges’ compliance with prior regulatory orders from 2012–2014, assessing internal controls over regulatory functions such as outsourcing and governance, monitoring listing standards for exchange-traded products, evaluating options listing programs, examining IT risk management systems, and ensuring adherence to Section 31 of the Exchange Act. The letter makes no allegations of fraud, names no specific exchanges or individuals as violators, and cites no financial penalties, charges, or enforcement outcomes. It explicitly clarifies that the document is not legal advice, does not create enforceable rights, and is subject to change based on market conditions or resource availability. OCIE emphasized a risk-based approach to oversight, with examinations designed to promote compliance rather than punish misconduct. The letter was issued by the Office of Market Oversight within OCIE and was intended as a preparatory notice to exchanges, not as a public announcement of wrongdoing. No evidence of fraud, misconduct, or regulatory violations is contained within the text—only a roadmap for future regulatory scrutiny.
Extracted insights
- person market oversight
- person national associate director
- organization National Securities Exchanges
- organization Ocie
- organization Office Of Compliance Inspections And Examinations
- organization Office Of Market Oversight
- organization United States Securities And Exchange Commission
- Market Oversight is preparing to conduct examinations of the national securities exchanges in Fiscal Year 2015
- Market Oversight would like to provide the national securities exchanges with the list of examination priorities for Fiscal Year 2015
- Market Oversight looks forward to working with you and your staff in Fiscal Year 2015
- National Associate Director asks to contact (202) 551-4981
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
OFFICE OF COMP L IANCE
I N S P E
CTIONS AND
EXAMINATIONS
Dear Chief Regulatory Officer:
WASHINGTON, D.C. 20549
January 13,2015
The
Office of Market Oversight ("Market Oversight") within the Office of Compliance
Inspections and Examinations
("OCIE") is preparing to conduct examinations of the national
securities exchanges in Fiscal Year 2015 pursuant to Sections 17(a)(1) and 17(b)
ofthe
Securities Exchange Act of 1934 ("Exchange Act") and Rule 17a-1 thereunder. As part of its
risk-based examination program, Market
Oversight has established certain examination priorities
for Fiscal Year 2015 that will guide the selection
of the programs and areas to examine in the
fiscal year.
1
Market Oversight would like to provide the national securities exchanges with the following list
of examination priorities for Fiscal Year 2015:
• Examination of certain exchanges' compliance with undertakings imposed by applicable
Orders Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections
19(h)(l) and
21 C of the Exchange Act ("OIP"). Those exchanges which became subject
to an
OIP in 2012, 2013, or 2014 would be examined as part ofthis initiative.
• Examination of certain exchanges' internal controls surrounding regulatory
responsibilities and decisions. For example, potential examinations in this area may
include reviews
of a national securities exchange's outsourcing of regulatory functions,
the funding
of an exchange's regulatory functions, and the governance and oversight of
an exchange's regulatory functions.
• Ongoing examination of listing exchanges' monitoring and enforcement of initial and
continued listing standards for exchange-traded product
s.
• Examination of options exchanges' listing programs, including assessing compliance
with li sti ng requirements and evaluating the policies and procedures regarding listing
programs.
This document was prepared by SEC staff, and the views expressed herein are those of OCIE. The
Commission has expressed no view on this document's contents.
It is not legal advice; it is not intended to ,
does not, and may not be relied upon to create any rights, substant
ive or procedural, enforceable at law by
any party
in any matter civil or criminal.
• In coordination with OCIE's Technology Controls Program, examination of certain
exchanges' controls related to the management
of information technology, such as in the
areas of: written supervisory policies and procedures; information security and incident
response; business continuity planning and pandemic preparedness; computer,
telecommunications and networking operations; software development and testing;
outsourcing and vendor management; and enterprise risk management.
• Examination of certain exchanges' compliance with obligations under Section 31 of the
Exchange Act and Rule 3 1 thereunder.
The preceding list
of Fiscal Year 2015 Market Oversight examination priorities is not static and
remains subject to change due to unexpected events in the market or other factors. Furthermore,
subject to the availability
of resources and other factors, Market Oversight also may establish
additional examination priorities for Fiscal Year
2015.
Market Oversight looks forward to working with you and your staff in Fiscal Year 2015 to
complete these examination priorities. If you have any questions conceming the matters
discussed in this letter, please contact me at
(202) 551-4981.
N atio.nal Associate Director
OCIE Office of Market Oversight
2 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
OFFICE OF C OM P L IANCE
I N S P ECTION S AN D
EXAMI N ATIONS
Dear Chief Regulatory Officer:
WASHINGTON , D.C . 20549
January 13 ,2015
The Office of Market Oversight ("Market Oversight") within the Office of Compliance
Inspections and Examinations ("OCIE") is preparing to conduct examinations of the national
securities exchanges in Fiscal Year 2015 pursuant to Sections 17(a)(1) and 17(b) ofthe
Securities Exchange Act of 1934 ("Exchange Act") and Rule 17a-1 thereunder. As part of its
risk-based examination program, Market Oversight has established certain examination priorities
for Fiscal Year 2015 that will guide the selection of the programs and areas to examine in the
fiscal year. 1
Market Oversight would like to provide the national securities exchanges with the following list
of examination priorities for Fiscal Year 2015:
• Examination of certain exchanges' compliance with undertakings imposed by applicable
Orders Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections
19(h)(l ) and 21 C of the Exchange Act ("OIP"). Those exchanges which became subject
to an OIP in 2012, 2013, or 2014 would be examined as part ofthis initiative.
• Examination of certain exchanges' internal controls surrounding regulatory
responsibilities and decisions. For example, potential examinations in this area may
include reviews of a national securities exchange's outsourcing of regulatory functions,
the funding of an exchange's regulatory functions, and the governance and oversight of
an exchange's regulatory functions.
• Ongoing examination of listing exchanges ' monitoring and enforcement of initial and
continued listing standards for exchange-traded products.
• Examination of options exchanges' listing programs, including assessing compliance
with listing requirements and evaluating the policies and procedures regarding listing
programs.
This document was prepared by SEC staff, and the views expressed herein are those of OCIE. The
Commission has expressed no view on this document's contents. It is not legal advice; it is not intended to,
does not, and may not be relied upon to create any rights, substantive or procedural, enforceable at law by
any party in any matter civil or criminal.
• In coordination with OCIE's Technology Controls Program, examination of certain
exchanges' controls related to the management of information technology, such as in the
areas of: written supervisory policies and procedures; information security and incident
response; business continuity planning and pandemic preparedness; computer,
telecommunications and networking operations; software development and testing;
outsourcing and vendor management; and enterprise risk management.
• Examination of certain exchanges' compliance with obligations under Section 31 of the
Exchange Act and Rule 31 thereunder.
The preceding list of Fiscal Year 2015 Market Oversight examination priorities is not static and
remains subject to change due to unexpected events in the market or other factors. Furthermore,
subject to the availability of resources and other factors, Market Oversight also may establish
additional examination priorities for Fiscal Year 2015.
Market Oversight looks forward to working with you and your s taff in Fiscal Year 2015 to
complete these examination priorities. If you have any questions conceming the matters
discussed in this letter, please contact me at (202) 55 1-498 1.
N atio.nal Associate Director
OCIE Office of Market Oversight
2