FiSolve Weekly News Digest: June 5, 2026

Here is what we are reading in the news this week...

SEC Publishes Draft Strategic Plan for Public Comment

The Securities and Exchange Commission (SEC) published a Draft Strategic Plan that it describes as focusing on returning the agency to the core mission set by Congress more than 90 years ago: protecting investors; maintaining fair, orderly, and efficient markets; and facilitating capital formation. The three goals set forth in the Draft Strategic Plan include: (1) Renew the SEC’s regulatory policy focus to support innovation, capital formation, market efficiency, and investor protection, (2) shift regulatory practices to increase stakeholder engagement, facilitate compliance efforts of market participants, and effectively return our enforcement approach to Congress’ original intent, and (3) optimize operational efficiency by enhancing organizational structure, modernizing our technology, reforming employee performance management, and implementing robust internal performance reporting that incorporates accountability for resources and program success. Comments are being accepted through July 2, 2026. Read more here.

FINRA Snapshot Shows Growth, Consolidation,

and Record Trading Activity

FINRA’s 2026 Industry Snapshot outlines a securities industry marked by continued expansion in workforce, increased firm consolidation, and rapidly evolving trading behavior, based on comprehensive regulatory data across member firms, registered representatives, and markets. The report highlights that the number of registered representatives grew to 639,723 in 2025 (up 5% since 2021) even as the total number of firms declined, signaling ongoing concentration, while dual registration has become the predominant model for professionals, with more than half holding both broker-dealer and investment adviser roles. At the same time, market activity has reached new highs, with average daily U.S. equity trading volume climbing to a record $828 billion and extended hours trading accounting for about 20% of activity. Options trading has also surged, with daily transactions rising sharply and short-dated “zero-days-to-expiration” contracts making up roughly 30% of trades. Overall, the report underscores an industry in transition (i.e., growing, consolidating, and adapting to new trading patterns) presenting both opportunities and challenges for firms, investors, and regulators. Read more here.

AI at Work: Productivity Gains Paired with a

Growing Human Connection Gap

Workday’s Human Connection Workplace Index finds that while AI is delivering clear benefits: reducing burnout (reported by about 62% of workers), boosting productivity (86%), and increasing employee confidence, it is simultaneously reshaping workplace relationships in potentially negative ways, contributing to a “connection deficit” marked by declining social interaction, weaker peer relationships, and rising loneliness. The study, based on a global survey of more than 2,000 AI‑using employees, shows that many workers increasingly rely on AI for advice, brainstorming, and even companionship, often because it feels easier and more judgment‑free than interacting with colleagues. As a result, routine human engagement is eroding. The report finds roughly a third of employees report minimal non‑task conversations at work, and a notable share have taken time off due to loneliness, with Gen Z particularly affected. The report concludes that although AI enables efficiency and frees workers for higher‑value tasks, organizations must actively foster human connection and collaboration to ensure that technological gains do not come at the expense of workplace community and well‑being. Read more here.

Bloomberg: Larger Investment Management Firms Pay for Trading Ideas from Other Investment Managers

Bloomberg is reporting Citadel is preparing to launch a new “buyside alpha-capture” program within its Global Quantitative Strategies unit that will pay other hedge funds for their trading ideas, incorporating these external signals into its own quantitative models. The initiative reflects a broader shift in the alpha-capture approach (originally focused on sell-side inputs like bank analysts) toward sourcing insights from buyside managers with proven track records. As large multi-strategy hedge funds such as Citadel, Millennium, and Point72 manage growing pools of capital with limited deployment capacity, they are increasingly seeking new data sources and strategies to generate returns. Citadel, which already operates a sell-side alpha program called Alpha League and manages about $68 billion, is expanding this approach as part of its effort to blend discretionary insights with quantitative investing. Read more here.

CFTC Rescinds Policy Regarding Denials of

Settlements in Enforcement Actions

Echoing an action announced by the SEC last month, the CFTC announced it has rescinded its long‑standing “no‑deny” settlement policy, which previously barred the agency from resolving enforcement actions if defendants publicly denied the allegations against them. The change brings the CFTC into alignment with most federal regulators and is intended to increase flexibility in settlements, conserve enforcement resources, provide greater certainty, and potentially speed compensation to harmed investors. The agency also indicated that the public‑interest impact of allowing denials is minimal and that the old rule may have created a misleading perception that the CFTC was shielding itself from criticism. Going forward, the CFTC will not enforce existing “no‑deny” provisions, while still retaining discretion to seek admissions when appropriate to do so. Read more here.

Presidential Executive Order Issued Designed to

Promote AI Innovation and Security

An Executive Order on “Promoting Advanced Artificial Intelligence Innovation and Security” was issued this week. The Order emphasizes accelerating U.S. AI leadership by reducing regulatory barriers while strengthening cybersecurity and national security safeguards through close public‑private collaboration. It directs federal agencies to rapidly harden government and critical infrastructure systems against cyber threats, expand AI-enabled defensive tools, and improve access to cybersecurity capabilities across sectors. This includes explicitly referencing operators such as community banks and other critical infrastructure providers, signaling relevance for financial services firms. The order also establishes a Treasury-led AI cybersecurity clearinghouse to coordinate vulnerability detection and remediation across industry, introduces a voluntary framework for sharing and testing “frontier” AI models with the government prior to release, and prioritizes enforcement against criminal misuse of AI (e.g., hacking or fraud). For financial institutions, key implications include increased expectations for cyber resilience, participation in shared threat intelligence and vulnerability programs, and potential engagement with government on secure deployment of advanced AI systems, all while avoiding new mandatory licensing regimes for AI development. Read more here.

SEC Division Director Addresses SEC–CFTC Harmonization and the Future of U.S. Market Structure

In remarks delivered during the Piper Sandler Global Exchange & Fintech Conference, SEC Trading and Markets Director Jamie Selway emphasizes that the central regulatory project shaping U.S. capital markets is deepening “harmonization” between the SEC and CFTC. This was described less a formal merger than a practical integration aimed at reducing duplicative oversight, clarifying jurisdiction, and enabling innovation across increasingly converged securities and derivatives markets. Director Selway highlights joint workstreams such as aligning rules on swaps data, margining, and product definitions; evaluating emerging products like tokenized securities, bitcoin options, and perpetual futures; and supporting structural changes including 23 by 5 equity trading, all under a principle of “innovation without arbitrage.” At the same time, Director Selway acknowledges that blending historically distinct regulatory philosophies will be challenging, requiring industry input, patience, and a shift away from “venue shopping,” even as policymakers pursue a coordinated framework that echoes the March 2026 SEC–CFTC Memorandum of Understanding—a “soft merger” model designed to eliminate turf wars, streamline compliance, and provide unified oversight without statutory consolidation. Director Selway concludes by stressing that harmonization must preserve core protections, distinguishing investing from gambling and limiting excessive leverage, so that regulatory integration ultimately strengthens market integrity rather than merely accelerating financial innovation. Read more here.

ESAs Publish the First Report on

DORA Major ICT-Related Incidents

The European Supervisory Authorities (EBA, EIOPA and ESMA) published their first annual overview of major Information and Communication Technology (ICT) related incidents in the EU financial sector based on a reporting mechanism established by the Digital Operational Resilience Act (DORA). The report shows that ICT risks are increasingly borderless and interconnected. The authorities also note that the recent evolution of highly capable AI-driven tools should encourage financial entities to strengthen cybersecurity measures to maintain their resilience going forward. Read more here.

📣 Coming Up📣

Compliance Anonymous

FiSolve's next Compliance Anonymous session is set for 12 PM ET on June 24. This confidential forum brings together legal, compliance, and operations professionals to openly discuss real-world challenges without attribution or judgment. Participation is free, but to ensure meaningful engagement, seating is limited. Reserve your spot today here.

💡FiSolve's Negotiation Tip of the Week💡

Discussions Stall

When negotiations stall, —especially in complex financial services contexts where risk, regulation, and valuation assumptions dominate—avoid forcing movement on positions and instead shift the conversation to underlying interests and constraints on both sides. A practical tactic is to reframe the impasse by summarizing points of alignment, then introduce a calibrated “what would have to be true” question to uncover hidden blockers (e.g., capital treatment, compliance thresholds, or timing pressures). From there, expand the solution set by trading across variables rather than conceding on a single issue. This may include structure, sequencing, or risk-sharing mechanisms, so progress can be made without eroding core value. This approach both preserves relationships and often reveals creative options that were obscured when the discussion was locked on surface-level demands.

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