The Asset Management Group of SIFMA ("SIFMA AMG") submitted comments on the European Commission's ("EC") consultation document regarding foreign exchange ("FX") financial instruments, which considers where the boundary lies between what is and is not an FX financial instrument. SIFMA AMG focused its letter on questions that address the scope of the FX spot test in light of its members' use of FX markets, as well as SIFMA AMG's interaction with other global regulators on the topic. The letter argues that FX spots are unique instruments that are distinct from derivatives. It urges the EC to

On May 16, 2014, the United States Court of Appeals for the Eleventh Circuit issued a historic decision defining for the first time what constitutes an "instrumentality" of a foreign government, and thus who may be considered a "foreign official" under the Foreign Corrupt Practices Act ("FCPA"). In U.S. v. Esquenazi, Joel Esquenazi and Carlos Rodriguez, executives of Terra Telecommunications Corp., a Florida-based company that purchased phone time from foreign vendors, were convicted of conspiracy, violations of the FCPA and money-laundering for taking part in a multi-year scheme to bribe

In a speech before the New England Council, Comptroller of the Currency Thomas J. Curry discussed cybersecurity, recent efforts to combat cyberattacks, and risks stemming from relationships between banks and their third-party service providers. Echoing remarks made last month before a meeting of CES (Consumer Electronics Show) Government, Comptroller Curry mentioned three specific risks related to third-party cybersecurity: (i) the extent to which service providers are consolidating and leaving financial institutions more dependent upon a single vendor, (ii) the increased reliance by banks on

FINRA issued a regulatory notice to provide additional information on how trades in certain securities that have both debt- and equity-like features, or "hybrid" securities, must be reported. Specifically, the SEC approved an interpretation regarding the appropriate trade reporting facility to which firms should report transactions in the following three types of hybrid securities: unlisted depositary shares having a liquidation preference of $1,000 or more; unlisted non-convertible, preferred securities having a liquidation preference of $1,000 or more; and unlisted capital trust securities

FINRA issued a regulatory notice to announce the SEC approval of amendments to FINRA Rule 5110 ("Corporate Financing Rule-Underwriting Terms and Arrangements") to expand circumstances where termination fees and rights of refusal are permissible. The amendments provide a greater degree of flexibility in negotiating the terms of their agreements for terminated offerings while providing protection for issuers if a firm fails to perform the underwriting services. Additionally, the amendments add an exemption for exchange-traded funds that are not investment companies from the Rule 5110 filing