SEC Chair Jay Clayton, Division of Investment Management Director Dalia Blass, Division of Corporation Finance William Hinman and Division of Trading and Markets Brett Redfearn directed staff "to review the effectiveness of the existing regulatory requirements in protecting investors ... who invest in leveraged/inverse products and other complex products."
The SEC proposed replacing an exemption for certain clearing agencies and dual registrant broker-dealers concerning the portfolio margining of swaps and security-based swaps that are cleared credit default swaps.
The SEC adopted amendments that impose additional conditions on the ability of a broker-dealer to publish a quotation for securities that are not listed on a national securities exchange. The amendments were published in the Federal Register.
The National Adjudicatory Council modified the principal considerations in its Sanction Guidelines to expressly include the consideration of age and physical or mental health status when determining the reason that a customer was unable to protect his or her own interests.
The SEC proposed to establish a new limited and conditional exemption from the broker registration requirements for natural persons engaging in certain limited capital-raising activities on behalf of issuers seeking to raise funds from accredited investors.
The SEC proposed amendments to regulations on alternative trading systems to improve the "operational transparency, system integrity and regulatory oversight" of those systems that trade in government securities.
SEC Director of the Division of Enforcement Stephanie Avakian highlighted efforts "to combat wrongdoing, compensate harmed investors, and maintain confidence in the integrity and fairness of our markets."