IOSCO published a draft consultation report on practices that might reduce reliance by investment advisers on credit rating agencies ("CRAs"); the Commission also requested the views of investment managers, institutional investors and other interested parties as to best practices. IOSCO noted that the role of CRAs has come under regulatory scrutiny as a result of the over-reliance upon them by market participants. IOSCO's report includes a list of good practices to reduce this reliance, including: that investment managers make their own determinations as to the credit quality of a financial

The CFTC, the Reserve Bank of Australia and the Australian Securities and Investments Commission signed a Memorandum of Understanding ("MOU") regarding cooperation and the exchange of information in the supervision and oversight of clearing organizations that operate on a cross-border basis in the United States and in Australia. See: Press Release; MOU Concerning Cooperation and the Exchange of Information Related to the Supervision of Cross-Border Clearing Organizations.

FINRA released a podcast summarizing the latest FINRA notices, compliance resources and news from May 2014. The podcast highlighted recent regulatory notices and their topics, including: 14-20: FINRA's mandate that firms must select product and problem codes when (i) reporting information regarding written customer complaints alleging theft or misappropriation of funds or securities, or forgery, (ii) reporting quarterly statistical and summary information regarding written customer complaints, and (iii) completing the online form to file copies of required documents. 14-21: Approved amendments

The CFTC held a Technology Advisory Committee ("TAC") meeting consisting of three panels which discussed, among other things, high-frequency trading in the derivatives markets; programs designed by the futures exchanges to attract business and provide services to customers, including co-location; the CFTC's surveillance program; and the impediment to buy-side participation on swap execution facilities that the CFTC's own rules establish. C lick here to view a summary of the meeting prepared by Delta Strategy Group. See: CFTC TAC Meeting; Commissioner O'Malia's Opening Remarks. Related news

The U.S. Court of Appeals for the Second Circuit vacated the decision of the U.S. District Court for the Southern District of New York to reject a 2011 SEC settlement with Citigroup. In November 2011, Judge Jed S. Rakoff rejected a settlement in which Citigroup neither admitted nor denied the SEC's allegations. Judge Rakoff criticized the SEC's use of a "neither admit nor deny settlement," holding that the Court did not have sufficient facts to determine whether the settlement was "fair, reasonable, adequate and in the public interest." He explained that "allowing defendants to enter into