The Managed Funds Association ("MFA") submitted a letter requesting that the CFTC conduct targeted compliance reviews of the rulebooks and user agreements of temporarily registered swap execution facilities ("SEFs"), and enforce the CFTC's SEF rules and related staff guidance before the effective date of the first "made available-to-trade" ("MAT") determination. In requesting such action, the MFA outlined the material issues that MFA members have encountered related to SEF rulebooks, SEF user agreements, and operational and documentation readiness for the SEF trading of bunched orders in

FINRA has filed with the SEC a proposed rule change to adopt FINRA Rule 7640A ("Data Products Offered by Nasdaq") that would affect the process by which fees are set for market information. According to FINRA, the rule change (i) describes FINRA's practices relating to the distribution of market data for over-the-counter ("OTC") transactions in national market system ("NMS") stocks generated through the operation of the FINRA/Nasdaq Trade Reporting Facility ("TRF"), and (ii) identifies Nasdaq rules relating to products that distribute FINRA/Nasdaq TRF data to third parties. See: Text of the

FINRA filed with the SEC proposed rule changes to amend FINRA Rule 5110("Corporate Financing Rule - Underwriting Terms and Arrangements") and Rule 5121("Public Offerings of Securities with Conflicts of Interest") to "simplify and refine" the scope of the rules. Rule 5110 generally regulates underwriting compensation and prohibits unfair arrangements in connection with the public offering of securities. Rule 5121 generally provides that members with a conflict of interest may not participate in a public offering unless the members comply with certain prescribed disclosures or other protections

FINRA announced that it ordered two affiliated broker-dealers to pay fines and restitution for the unsuitable sales of leveraged and inverse exchange-traded funds ("ETFs") and related supervisory deficiencies. According to the release, FINRA found that the broker-dealers made unsuitable recommendations for non-traditional ETFs to certain customers between January 2009 and June 2013. Some representatives did not fully understand the unique features and specific risks associated with leveraged and inverse ETFs; however, the firms allowed the representatives to recommend the ETFs to retail

The SEC has announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge funds, private equity funds, and transfer agents. The 2014 priorities include: wrap fee programs, quantitative trading models, and payments by advisers and funds to entities that distribute mutual funds; issues related to the fixed-income market and trading issues, including compliance with the new market access rule; risk-based