Timothy B. Nagy

TIM NAGY advises financial institutions, particularly broker-dealers, in compliance and enforcement matters. He has extensive knowledge of the U.S. capital markets and the rules that govern market participants, including customer order handling rules, anti-manipulation rules, fair pricing and markup/markdown rules, best execution requirements, SEC and SRO rules affecting proprietary trading operations, market structure issues (Regulation NMS), and Rule 15c3-5 - Market Access Rule. Tim is a member of Sidley’s global Securities Enforcement and Regulatory practice, which received the 2019 Chambers USA Award for Financial Services Regulation, and was named the “Law Firm of the Year” for Securities Regulation in 2020 and 2017 by U.S. News – Best Lawyers.

Tim’s experience includes:

• Representing broker-dealers in connection with investigations of mark-ups/mark-downs in fixed income securities transactions.
• Representing broker-dealers in connection with SEC and Financial Industry Regulatory Authority (FINRA) reviews of order routing practices, including payment for order flow arrangements.
• Advising clients on issues regarding Regulation SHO, OATS and TRF reporting requirements, and the implementation of The Consolidated Audit Trail (CAT).
• Counseling clients in connection with SEC and FINRA examinations, including Trading & Financial Compliance Examinations (TFCE).
• Representing individuals and broker-dealers in investigations conducted by the SEC and FINRA including investigations relating to potentially manipulative trading practices, anti-money laundering and trade volume advertising.
• Conducting internal reviews of at least three different national securities exchanges.

In addition, Tim assists clients in large-scale enforcement actions. Recent matters include:

• An investigation of a lead underwriter in a high-profile IPO.
• An SEC investigation of a government-sponsored enterprise related to subprime mortgages.
• SEC and PCAOB investigations of a foreign accounting firm in the international network of a Big Four accounting firm.
• An SEC enforcement referral based on the annual examination of a Nationally Recognized Statistical Rating Organization (NRSRO).

Tim spent nine years in FINRA’s Department of Market Regulation where he routinely negotiated Letters of Acceptance, Waiver and Consent (AWCs) and represented the department in disciplinary hearings and appellate proceedings. Tim also counseled and advised FINRA staff on all facets of the FINRA regulatory scheme, including regulatory sweeps, investigations and examinations.

Sidley Client Updates:

• Co-Author, SEC Proposes New Standard of Care for Broker-Dealers: Overview and Consideration for Investment Professionals (May 2018)
• Author, Financial Industry Regulatory Authority Issues Its 2018 Examination Priorities (Jan. 2018)
• Author, Financial Industry Regulatory Authority Issues Report on Recent Examination Findings (Jan. 2018)
• Author, U.S. Treasury Department Outlines Regulatory Initiatives Related to Equity Market Structure (Oct. 2017)
• Author, SEC Approves New FINRA and MSRB Rules Requiring Disclosure of Mark-Ups/Mark-Downs for Debt Transactions (Nov. 2016)
• Author, FINRA and MSRB Issue Guidance on Best Execution Obligations in Equity, Options and Fixed Income Markets (Dec. 2015)
• Author, FINRA Issues Report on Conflicts of Interest (Nov. 2013)
• Author, FINRA Issues Priorities for 2014 (Jan. 2014)
• Author, FINRA 2015 Exam Priorities Overview (Jan. 2015)