New SRO rules and rule proposals were announced by the SEC. Click on the links below to view the SEC's notices of the rule changes for the week of January 27-February 2: Products CBOE: Effective Immediately - Rule Change to Extend a Pilot Program to List and Trade P.M.-Settled S&P 500 Index Option Products (see also Exhibit 5) CME: Effective Immediately - Rule Change to Amend the Fee Schedule Applicable to Its OTC Credit Default Swap Clearing Offering Trading Rules CHX: Effective Immediately - Rule Change to Amend the Order Cancellation Fee (see also Exhibit 5) CHX: Effective Immediately -

The U.S. – EU Financial Markets Regulatory Dialogue ("FMRD") met to exchange information on regulatory developments, identify potential regulatory conflicts and discuss shared interest in developing robust standards. The participants agreed to address and implement in a timely manner the G20 commitments on OTC derivatives, including the agreement to trade on standardized derivatives on organized platforms. Representatives included the European Commission ("EC"), European Supervisory Authorities ("ESAs"), European Banking Authority, European Insurance and Occupational Pensions Authority

Janet Yellen took the oath of office as Chair of the Board of Governors of the Federal Reserve System ("FRB"). Dr. Yellen's term as Chair ends February 3, 2018, and her term as a member of the Board ends January 31, 2024. See: FRB Press Release.

The SEC filed a civil injunctive action against Revelation Capital Management Ltd. ("Revelation Capital") and its principal for illegal short selling in connection with an offering in violation of Regulation M. The SEC alleged that Revelation Capital and its principal violated SEC rules by short selling Central Fund of Canada Limited's securities during the defined restricted period and then purchasing the same securities in Central Fund's offering. Lofchie Comment: Violations of the prohibitions with regard to short selling in Regulation M are very high on the SEC's enforcement list and are

FINRA filed with the SEC a proposed rule change to amend provisions addressing per share estimated valuations for unlisted direct participation programs ("DPP") and real estate investment trust ("REIT") securities. FINRA proposed to amend NASD Rule 2340 ("Customer Account Statements") and FINRA Rule 2310 ("Direct Participation Program") to modify and expand (i) the requirements relating to the inclusion of per share estimated valuations and (ii) the requirements applicable to members' participation in a public offering of DPP or REIT securities. See: Text of Proposed Rule Change.