The SEC charged Merrill Lynch with making faulty disclosures as to collateral selection for two collateralized debt obligations ("CDOs") that it structured and marketed to investors, as well as maintaining inaccurate books and records for a third CDO. The SEC's order found that Merill Lynch failed to inform investors that a third party had exercised significant influence over the selection of collateral for the CDOs and that its interests were "not necessarily aligned with those of other investors" because it had hedged its equity positions by shorting against the CDOs. Similarly, the SEC also

SIFMA Asset Management Group ("AMG") and ISDA announced they have developed CUSIP numbers for the Market Agreed Coupon ("MAC"). MAC contracts are interest-rate swap ("IRS") contracts with predefined market-agreed terms, including start and end dates, payment dates, fixed coupons, currencies and maturities. The MAC contracts were developed jointly by SIFMA AMG and ISDA in April 2013. SIFMA AMG and ISDA stated that the establishment of CUSIP numbers will facilitate trading and transparency in the interest rate swaps marketplace. Additionally, CUSIPs will enhance the operational efficiency of

SIFMA has announced the appointment of Kenneth E. Bentsen, Jr. as President and CEO, effective immediately. Mr. Bentsen previously served as SIFMA's president. Former Senator Judd Gregg has informed the SIFMA Board of Directors that he is stepping down as CEO. Senator Gregg will continue working with the association in the role of senior advisor. See: Press Release.

The SEC charged a London-based hedge fund adviser and its former U.S.-based holding company with internal control failures that led to the overvaluation of a fund's assets and inflated fee revenue for the firms. During the period of managing a private equity fund, the adviser's internal control failures caused the overvaluation of the fund's 25 percent private equity stake in an emerging market coal mining company. The overvaluation resulted in inflated fees to the advisory firm and in the overstatement of assets under management in the holding company's filings with the SEC. See : SEC Order

The Managed Funds Associated ("MFA") submitted comments to the CFTC regarding its Concept Release on Risk Controls and System Safeguards for Automated Trading Environments. In the letter, the MFA noted that the CFTC has "implemented a robust derivatives market regulatory framework" with rigorous controls and safeguards for automated trading environments, but suggests that such controls and safeguards need to be further enhanced. The following recommendations were made: "As high frequency trading ("HFT") is not a strategy, but the use of technology to deploy certain trading strategies, the