Intermarket Surveillance Group Issues Notice Regarding Deadline for Validations of Electronic Blue Sheet Reporting

On March 30, 2006, the SRO members of the Intermarket Surveillance Group (ISG) issued ISG Regulatory Memorandum 2006-01 regarding the deadline for completing the mandatory validation of electronic blue sheet (EBS) reporting systems. The ISG previously issued ISG Regulatory Memorandum 2005-01, which required that broker-dealers conduct and complete a validation of all required EBS data to ensure that EBS transmissions are consistent with current standards and accurately reflect broker-dealers’ books and records. The deadline for completion of the validation is March 31, 2006.

On February 6, 2006, the Securities Industry Association (SIA) requested that the ISG extend the validation due date. The ISG has decided not to extend the March 31, 2006 deadline for completing the validation, but has stated that broker-dealers that report inconsistencies in their EBS reporting will have until July 31, 2006 to complete remediation. In addition, the ISG indicated that, between now and April 17, 2006, it will entertain written requests for extensions from the July 31, 2006 deadline. However, the ISG also stated that any such requests will be evaluated on a case-by-case basis, and that extensions will be granted in only the most extreme cases.

View ISG Regulatory Memorandum 2006-01

View ISG Regulatory Memorandum 2005-01

Securities Industry FYI is a service of the Broker-Dealer Practice of Morgan Lewis. If you have any questions concerning these important legal developments, please contact any member of Morgan Lewis’s Broker-Dealer Practice, including:

Washington, D.C.
Mark Fitterman
202.739.5019
mfitterman@morganlewis.com

Theodore R. Lazo
202.739.5250
tlazo@morganlewis.com