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Commentary by Steven Lofchie

A request by the Chicago Mercantile Exchange Inc. ("CME") to withdraw from registration as a securities clearing agency under Section 17A of the Exchange Act was published in the Federal Register. The CME currently is registered as a derivatives clearing organization ("DCO") with the CFTC and "offers clearing services for futures and swap products." CME stated that it registered as a clearing agency pursuant to Section 17A of the Exchange Act "solely for the purpose of clearing security-based swaps" ("SBS")." However, CME reported, it has not cleared any SBS to date and does not plan to clear

SIFMA filed an amicus curiae brief with the Second Circuit Court of Appeals urging affirmation of a Southern District of New York decision dismissing the FDIC's Securities Act claims that were brought in reliance on the argument that the "FDIC Extender Statute," 12 U.S.C. § 1821(d)(14), should apply to the statutes of repose in Section 13 of the Securities Act. The SIFMA brief argues that the FDIC Extender Statute does not apply to the Securities Act claims because the FDIC Extender Statute is limited to "statutes of limitation" in state common law contract and tort claims and not applied to

Commentary by Steven Lofchie

The SEC charged four former clearing firm officials for their roles in a series of accounting and disclosure failures stemming from decisions to extend credit to certain customers beyond what is allowed under the margin requirements. The SEC alleged that the clearing broker-dealer provided customers with nearly $100 million in margin loans secured by mostly "risky, unrated municipal bonds," such as those that were used to fund a horse racetrack operated by one of the customers. The SEC investigation found that instead of liquidating the collateral, accounting for the loan losses properly and

FINRA proposed amendments to reporting rules concerning over-the-counter transactions in equity securities to FINRA Facilities to (i) allow the submission of "clearing-only, non-regulatory reports" relating to previously executed and reported transactions and (ii) exempt such reports from certain reporting requirements under FINRA rules. FINRA proposed adopting a new subparagraph (4) under FINRA Rules 7130(g), 7230A(i), 7230B(h) and 7330(h) ("Submission of Non-Tape Reports Associated with Previously Executed Trades") to create a uniquely identified category of submissions to FINRA that are