The CFTC held its Market Risk Advisory Committee ("MRAC") Meeting, where members discussed (i) cybersecurity, and (ii) the effect of the concentration of futures commission merchants ("FCMs") and other factors on market liquidity. Commissioner Sharon Bowen, who serves as the sponsor of MRAC, delivered opening remarks at the meeting, setting out the agenda for the panel discussions. Commissioner J. Christopher Giancarlo also delivered prepared remarks for the meeting, discussing the endangerment of FCMs in the United States. According to Commissioner Giancarlo, there are far fewer FCMs than

The FINRA proposal to clarify the scope of the definition of "Asset-Backed Security" for purposes of reporting to FINRA's Trade Reporting and Compliance Engine ("TRACE") system was published in the Federal Register. It is effective immediately. Comments on the rule change can be submitted until June 23, 2015. See: 80 FR 31429. Related news: FINRA Proposes Rule Amendment to Clarify Definition of "Asset-Backed Security" in TRACE System (May 19, 2015).

In a letter to top regulators, the Investment Company Institute ("ICI") expressed concern about the proposed framework and specific methodologies contained in the second consultation document issued by the Financial Stability Board ("FSB") and IOSCO, dated March 4, 2015. That document focused on assessment methodologies for identifying non-bank, non-insurer, global systemically important financial institutions. The ICI letters were sent to U.S. Treasury Department Secretary Lew, SEC Chair White, Board of Governors of the Federal Reserve System Chair Yellen and the FSB. According to the ICI

A Government Accountability Office Report found that the IRS had internal control deficiencies that contributed to the "continuing material weakness" in internal control over unpaid tax assessments. Lofchie Comment: The U.S. government is itself routinely deficient in ways for which private entities, if even slightly deficient, would be subject to massive penalties. It is doubtless the case that the problems that the government is trying to correct are challenging and that it is acting in good faith in trying to correct them, but that is often the case in the private sector as well. See: GAO

MFA submitted a comment letter to the Financial Stability Board ("FSB") and IOSCO regarding their second consultation document on assessment methodologies for identifying non-bank, non-insurer, global systemically important financial institutions ("G-SIFIs"). MFA stated that the consultation paper provides a "lengthy list" of indicators for investment funds, but does not propose specific thresholds for the various metrics and ratios, or provide an explanation of how these indicators identify one of the stated risks as a systemic risk, as opposed to an ordinary market, counterparty or