The SEC charged a high-frequency trading ("HFT") firm with violating the net capital rule that requires all broker-dealers to maintain minimum levels of net liquid assets or net capital. According to the Order, the SEC found that Latour Trading ("Latour") repeatedly miscalculated its net capital amounts in 2010 and 2011 by failing to make proper haircut deductions from the market value of its proprietary securities positions and other positions. The SEC alleged that Latour operated without maintaining its required minimum net capital on 19 of 24 reporting dates during a two-year period. During

The U.S. Government Accountability Office ("GAO") issued a report (the "Report") examining FSOC's efforts to address the recommendations from a GAO 2012 report to improve transparency, accountability, collaboration and coordination. The Report found that, while FSOC has undertaken efforts to improve in those areas, additional efforts are needed. The Report found that FSOC still lacks a comprehensive and systematic approach to identifying emerging threats to financial stability. Although FSOC developed two tools to address the GAO's concerns, one of them does not focus on risks to the financial

In their remarks before the 2014 SRO Outreach Conference, SEC Chair Mary Jo White and Commissioner Daniel M. Gallagher spoke about reevaluating the role and function of SROs. Chair White highlighted the key concerns for SROs and equity markets, including the risk of instability and disruption. She explained that there should be "zero tolerance for systems issues that undermine the reliability of our markets and erode investor confidence." Chair White recommended that SROs develop a collaborative approach across landscapes to help reduce the number of disruptions. She also briefly touched on

The Financial Engineering Division at Stevens Institute of Technology published new research on the state of high-frequency trading ("HFT") and a proposed solution to mitigate key problems, the authors believe may be created by HFT, while "maintaining its benefits." The institute's white paper, titled "On the Impact and Future of HFT," addresses three major areas: HFT, as seen from various market agents' perspectives; the imminent problems and risks of HFT, including potential HFT systemic risk, as seen by various stakeholders; and possible solutions to existing issues of HFT, along with

IOSCO published a consultation report, titled "Risk Mitigation for Non-Centrally Cleared OTC Derivatives," which proposes standards across nine different areas aimed at mitigating the risks in the noncentrally cleared OTC derivatives markets. The areas for the proposed standards include: scope of coverage; trading relationship documentation; trade confirmation; valuation with counterparties; reconciliation; portfolio compression; dispute resolution; implementation; and cross-border transactions. The proposed standards were developed by IOSCO in consultations with the Basel Committee on Banking