The SEC announced charges against both the CEO and the former CFO of QSGI Inc., a computer equipment company, for misrepresenting the state of the company's internal controls over financial reporting. The Sarbanes-Oxley Act requires a management report on internal controls over financial reporting to be included in a company's annual report, and also requires both the CEO and CFO of a company to sign certifications confirming they have disclosed all significant deficiencies to outside auditors and reviewed the annual report. The SEC Order alleges that both the CEO and the former CFO of the

The MFA sent letters to CFTC Chairman Timothy Massad and the other CFTC Commissioners outlining the MFA's current priorities with the CFTC. The letters reiterated points that were raised in earlier letters and in testimony before Congress. Issues addressed in the letters include: impartial access to SEFs and SEF-implementation concerns; exemption for SEF members that are registered as CTAs/CPOs from the oral and written recordkeeping requirements outlined in CFTC Rule 1.35(a) ("Records of Commodity Interest and Related Cash or Forward Transactions"); swap data reporting issues; cross-border

After the CFTC's continuing back-and-forth with SIFMA, ISDA and the Institute of International Bankers (the "Associations"), the United States District Court for the District of Columbia denied the CFTC's motion to file a supplemental declaration and two exhibits in the Cross-Border Guidance Case. The filing consisted of the supplemental declaration of CFTC Assistant General Counsel Martin B. White, as well as two additional documents: (i) SIFMA's "Note Regarding Non-U.S. Affiliate Participation in Swaps Market" and (ii) a copy of an article published by POLITICO Pro, titled " Banks Outline

FINRA issued a regulatory notice regarding the SEC's approval of FINRA Rule 2081, which is effective immediately. The new rule prohibits member firms and associated persons from conditioning or seeking to condition the settlement of a dispute with a customer on, or to otherwise compensate the customer for, the customer's agreement to consent to, or not to oppose, the firm's or associated person's request to expunge such customer dispute information from the Central Registration Depository. See: FINRA Reg. Notice 14-31. Related news: SEC Approves FINRA-Proposed Rule to Prohibit Conditioning

The SEC announced that Alberto Arevalo was named as the new Associate Director in the Office of International Affairs. In his new role, Mr. Arevalo will oversee international enforcement, supervisory cooperation and technical assistance programs. See: SEC Press Release.