The SEC Office of Investor Education and Advocacy issued an Investor Bulletin to help educate investors about bank sweep programs, which some broker-dealers offer to their customers as a way to manage cash in their brokerage accounts. The Investor Bulletin explains what bank sweep programs are, describes some potential associated risks, and suggests questions to ask broker-dealers in order to determine the best ways to manage cash in a brokerage account. See: SEC Investor Bulletin: Bank Sweep Programs.

The SEC was established 80 years ago on June 6, 1934, when President Franklin Delano Roosevelt signed the Securities Exchange Act of 1934 into law. The SEC published a spotlight page on its website highlighting the events of 1934 and the creation of the SEC. Click here for Lofchie YouTube Selection.

The National Futures Association ("NFA") announced changes to CPO Form PQR and CTA Form PR based on feedback received from CPO/CTA Members. The changes, according to the NFA, are intended to simplify and make less burdensome the Forms' questions relating to the NFA's request for information relating to any funds under management allocated to futures and swaps. A few questions have been deleted and more help with certain questions has been provided. The changes will become effective on June 30, 2014, with updated Forms available on the Easy File System on the first week of July 2014. See: NFA

The Board of Governors of the Federal Reserve System ("FRB") announced the appointment of Eric S. Belsky as Director of the Division of Consumer and Community Affairs. Dr. Belsky, who currently serves as Managing Director of the Joint Center for Housing Studies of Harvard University, will succeed Sandra F. Braunstein. He is expected to start at the FRB in August. See: FRB Press Release.

The SEC charged Liquidnet Inc., a brokerage firm that operates a dark pool alternative trading system ("ATS"), with improperly using subscribers' confidential trading information in marketing its services. Regulations require ATSs to establish and enforce safeguards and procedures to protect the confidential trading information of its subscribers. According to an SEC investigation, Liquidnet Inc. violated its regulatory obligations (see Regulation ATS, Rule 301(b)(10) ("Procedures to ensure the confidential treatment of trading information"). Liquidnet Inc. violated promises to its ATS users