Department of Treasury's Office of Financial Research ("OFR") issued its 2013 Annual Report. Dodd-Frank requires the OFR to report annually to Congress. This is OFR's second Annual Report following its first publication in July 2012. C lick here for a detailed summary of the OFR 2013 Annual Report prepared by Delta Strategy Group. Related news: Office of Financial Research Issues 2013 Annual Report to Congress (with Lofchie Comment) (December 17, 2013); Office of Financial Research 2012 Annual Report to Congress (July 23, 2012).

The Board of Governors of the Federal Service System ("FRB") announced that Sandra Braunstein, director of the Division of Consumer and Community Affairs, will retire on April 1, 2014. Ms. Braunstein served the FRB for nearly 27 years of service, including 10 years as the director of the division. See: Press Release.

On the second business day of the new year, the CFTC issued its first major no-action letter. The CFTC Divisions of Swap Dealer and Intermediary Oversight, Clearing and Risk, and Market Oversight ("Divisions") issued a time-limited (until September 15, 2014) no-action letter that extends relief previously granted, in Letter 13-71, to non-U.S. swap dealers ("SDs") doing business with non-U.S. customers. This relief generally exempts them from complying with "Transaction-Level" requirements, even when an individual in the United States is involved in effecting the transaction. The CFTC said that

The SEC has issued two temporary exemptions from Exchange Act Rule 17g-5(c)(1) ("Conflicts of Interest"). The rule prohibits a nationally recognized statistical rating organization ("NRSRO") from issuing or maintaining a credit rating solicited by a person that, in the most recently ended fiscal year, provided the NRSRO with net revenue equaling or exceeding 10% of the total net revenue of the NRSRO for the fiscal year. In both letters, the SEC issued a temporary and conditional extension of a previous exemptions from the Conflicts of Interest Rule, allowing Morningstar Credit and Kroll Bond

The National Futures Association ("NFA") has ordered a CTA firm and its principals to withdraw from NFA membership for charging excessive fees and failing to provide customers with a break-even analysis. Additionally, the NFA found that Cap Ex used a misleading disclosure document, conducted business with an entity that was required to be registered as a CPO but was not registered in such capacity, and failed to list an entity as a principal of the firm. Cap Ex principals Mr. Bramlett and Mr. Johnson are banned from applying for NFA membership or associate membership for a period of two years