Mark A. Sater

Mr. Sater is an associate in Davis Polk's Financial Institutions Group. [Full Bio]

Latest Articles

Earlier this month, SEC Chairman Jay Clayton and Division of Trading and Markets Director Brett Redfearn engaged in a public dialogue on equity market structure issues.  In addition to reviewing three equity market structure initiatives adopted by the SEC in 2018 (the transaction fee pilot, enhanced order handling disclosure requirements and new transparency requirements for alternative trading systems that trade NMS stocks), Clayton and Redfearn highlighted three areas for potential further rulemaking:…
The SEC recently voted to adopt amendments to Rule 606 of Regulation NMS (the “Final Rule”) that expand broker-dealers’ disclosure obligations with regard to how they handle investors’ orders. Specifically, the Final Rule requires broker-dealers, beginning May 20, 2019, (i) to provide, upon request, individualized reports in a standardized format containing information on their handling of customers’ “not held” orders (i.e., those orders for which the broker has price and time discretion) and (ii) to…
On October 11, 2018, the SEC reopened the comment period and requested additional comments for previously proposed rules relating to capital, margin, and segregation requirements for security-based swap dealers (“SBSDs”), major security-based swap participants (“MSBSPs,” and together with SBSDs, “SBS Entities”) and, in some cases, broker-dealers.  The rules, most of which were initially proposed six years ago, would establish: capital and margin requirements for non-bank SBS Entities (the federal banking regulators adopted capital and margin…
The Director of the SEC’s Division of Trading and Markets, Brett Redfearn, recently provided an update on the status of the consolidated audit trail (the “CAT”), which is being developed by the SROs and Thesys Technologies, LLC, the CAT plan processor.  The public statement noted that although the SROs were required to begin reporting to the CAT on November 15, 2017 under the CAT NMS Plan approved by the SEC, reporting has not yet begun.…
A recent decision by the D.C. Circuit Court of Appeals effectively raises the standard for SEC review and approval of rule change filings submitted by national securities exchanges, FINRA, and registered clearing agencies.  This decision could materially slow down a process that is a critical path for most self-regulatory organization business and regulatory initiatives.  It could also embolden market participants who believe that they may be negatively affected by an SRO’s rule change to challenge…
CFTC Chairman Timothy Massad announced this week that he will be stepping down on January 20. Commissioner J. Christopher Giancarlo, who is the sole Republican currently serving on the Commission, will take over on at least an interim basis. During his term as a CFTC commissioner, Mr. Giancarlo has published white papers and issued public statements that may foreshadow the CFTC’s priorities under the Trump administration and a Giancarlo chairmanship. He has generally been supportive…
On November 15, 2016, the SEC approved a plan to create a consolidated audit trail (the “CAT”) that will contain a record of order events for most equity and listed options transactions in the United States. When implemented, the CAT will dramatically enhance the ability of the SEC and the securities exchanges and FINRA (the “SROs”) to investigate and analyze market anomalies and potential misconduct. These improvements, however, will require significant financial and technological investment—especially…
In September 2016, the New York State Department of Financial Services (the “NYDFS”) proposed new cybersecurity regulations (the “Proposed Rules”) for banks, insurance companies and other financial institutions regulated by the NYDFS (“Covered Entities”).[1]  The Proposed Rules reflect an ongoing interest in cybersecurity by the NYDFS and other regulators as a result of recent high-profile cyberattacks on banks and other institutions, such as the attack on the Bangladesh Central Bank earlier this year.[2]  The NYDFS’s…