Dodd-Frank requires that the Office of Financial Research ("OFR") annually report the state of the U.S. financial system, the status efforts of the OFR, and key findings from research regarding a robust analysis of the financial system. The report found that threats to financial stability have "generally abated" since the previous 2012 report. However, it also found that the greatest threats that remain are the vulnerabilities in markets for securities financing transactions and credit, increases in interest rates, and uncertainty about the U.S. fiscal policy outlook. The OFR stated that there

FINRA has named two new public Governors, Dr. Brigitte C. Madrian and Dr. Luis M. Viceira, to its Board of Governors. Additionally, FINRA announced the creation of a new Investor Issues Committee. FINRA's newly created Investor Issues Committee will become active in January 2014 and will advise senior staff at FINRA on proposed rulemaking, policy initiatives, and other issues that significantly impact both retail and institutional investors. See: FINRA Press Release. See also: FINRA Announces Results of SFAB, NAC and District Committee Elections (Election Notice 12/17/13).

The CFTC has granted Banque Centrale de Compensation, doing business as LCH.Clearnet SA (LCH.C SA), registration as a derivatives clearing organization ("DCO") pursuant to CEA Section 5b ("Derivatives Clearing Organizations"). LCH.C SA, a subsidiary of LCH.Clearnet Group, Ltd., is organized under the laws of France and is primarily regulated in France. The CFTC stated that, subject to the terms and conditions of the Order, LCH.C SA is authorized to provide clearing services for credit default swaps. See: CFTC Press Release. Related news: CFTC No-Action Letter 13-52: LCH.Clearnet Ltd and

SIFMA has submitted comments to the SEC about the Chicago Board Options Exchange's ("CBOE") proposal to amend CBOE Rule 6.53 regarding option orders that are tied to stock orders. SIFMA applauded the CBOE's effort to enhance surveillance efforts, but said additional clarification should be required. For example, SIFMA said that the new rule does not specify whether clearing firms can report on behalf of the executing broker, a practice that SIFMA stated is common in the industry. SIFMA also identified a potential conflict with CBOE Rule 8.9(b), which requires clearing firms to submit on a

SIFMA has submitted comments to the IRS on proposed U.S. Treasury regulations relating to the definition of "issue price" of tax-exempt bonds for purposes of the arbitrage rules under Section 148 of the Internal Revenue Code. According to the letter, SIFMA disagrees with the approach to determining issue price embodied in the proposed regulations, which seeks to formalize policies previously applied through unofficial or non-precedential public statements, examination inquiries and practices of the Tax Exempt Bonds ("TEB") division of the Governmental Entities division of the Tax Exempt and