Mr Cooper Group Inc (COOP)

[grandetourismo]

FYI, If you are interested, or have the time, you could contact the "Intermarket Surveillance Group (ISG) and request a "Blue Sheet Audit" A blue Sheet audit is where the Brokers "Tape" is compared to the actual "sequence" of "transactions" that were placed that day. The audit can provide insight as to whether certain transactions were held up or otherwise placed out of sequence to the actual orders being placed by the retail market.

http://www.cftc.gov/industryoversight/contractsandproducts/sfpisgsummary.html

Intermarket Surveillance Group


Overview

The purpose of the ISG is to provide a framework for the sharing of information and the coordination of regulatory efforts among exchanges trading securities and related products to address potential intermarket manipulations and trading abuses. The ISG plays a crucial role in information sharing among markets that trade securities, options on securities, security futures products, and futures and options on broad-based security indexes. The ISG also provides a forum for discussing common regulatory concerns, thus enhancing members’ ability to fulfill efficiently their regulatory responsibilities.

In effect, the ISG is an information-sharing cooperative governed by a written agreement. The ISG is not subject to regulatory oversight, nor does it file rule changes with the CFTC or the Securities and Exchange Commission (SEC) or seek approval when it considers requests from securities or futures exchanges to become a member.

Background and History

The ISG was created in 1983 by the major U.S. securities exchanges in response to the growing need among these marketplaces to share information regarding securities’ related products related to the conduct of routine market. The proliferation of related products and derivative instruments created the need for a system of formalized, consistent procedures for the exchange of information across different jurisdictions. In 1990, an affiliate category of ISG membership was created to allow futures exchanges and non-U.S. organizations into the ISG to facilitate further information sharing. Today the ISG has grown to include North American, Asian, and European exchanges, all of which have a common interest in ensuring that the securities and futures marketplaces are regulated effectively and efficiently. All U.S. national securities exchanges and national securities associations are full members of the ISG, and most U.S. futures exchanges and non-U.S. exchanges and associations trading securities and related products are affiliate members of the ISG.

Information Sharing

Membership in the ISG carries with it a commitment to share information required for regulatory purposes with other members. ISG agreements provide that information, which is shared, must be kept strictly confidential and used only for regulatory purposes. Such information is shared on an as-needed basis and only upon request. In addition, U.S. securities participants, via the facilities of the Securities Industry Automation Corporation (SIAC), routinely share trading information electronically.

Allocation of Regulatory Responsibilities

In connection with the routine sharing of information, the ISG has defined certain types of violations which can occur across markets, and has allocated responsibility for surveillance for such activity to the appropriate member. This enables participants to avoid duplicative efforts while continuing to ensure effective intermarket surveillance.

Meetings

Generally, the ISG meets three times per year in North America. However, since 1994 in even numbered years, one meeting has been hosted by a foreign affiliate member. Meetings are open only to representatives of members and affiliates, prospective members, SIAC representatives, and appropriate governmental authorities such as the CFTC, SEC, the UK Financial Services Authority, and, on occasion, international organizations such as the International Organization of Securities Commissions (IOSCO). Senior market surveillance or market regulation personnel represent member organizations.

Subgroups

From time to time, and at the discretion of the Chairman, subgroups may be formed to address specific issues of importance to the Group. Such subgroups may be permanent or have a limited time depending on the subject. Subgroups are headed by a representative of a member or affiliate and are appointed by the Chairman. Meetings of subgroup members are generally independent of regular ISG meetings and may take place either at a location directed by the subgroup chairperson or telephonically during the four-month interval between ISG meetings. Ordinarily, standing subgroups meet on the day preceding a full ISG meeting.

Eligibility

Affiliate membership in the ISG is open to all recognized market centers that trade products that have rules and regulations designed to detect and deter possible abuses in their marketplaces. Participants in the ISG must have the ability to share regulatory information and otherwise cooperate with other ISG participants in connection with regulatory matters affecting their markets.

Trading in Security Futures Products

To detect manipulation and insider trading, the Commodity Exchange Act and the Exchange Act require that exchanges and associations trading security futures products have procedures in place for coordinated surveillance with other markets on which security futures products trade, any market on which any security underlying the security futures product is traded, and other markets on which any related security trades. The SEC and CFTC have interpreted the statutory requirement for coordinated surveillance to mean that an exchange or association must be: a Full Member of the ISG; an Affiliate Member having entered into appropriate supplemental information-sharing agreements; or have the ability to obtain all information that a Full Member of the ISG is currently able to obtain from both current and former members, including, among other things, the ability to obtain market surveillance reports or information, and information relating to investigations. Any information-sharing arrangement that is not effected through membership in the ISG should ensure that the information sharing is comparable to being a Full Member of the ISG. In a Federal Register release dated May 24, 2002 (page 36750), the CFTC and the SEC issued interpretive guidance regarding the coordinated surveillance requirement and membership in the ISG.

Last Updated: September 12, 2007