CFTC issued an order filing and settling charges against SHK Management, LLC ("SHK"), and its principal, Daniel Shak, for attempting to manipulate the price of Light Sweet Crude Oil ("WTI") futures contracts on the NYSE, and violating the intraday spot month speculative position limits applicable to WTI futures contracts on two days in 2008. According to the CFTC order, on each of the two trading days in 2008, SHK and Shak established substantial short positions in WTI futures contracts through Trading at Settlement ("TAS"). SHK and Shak then intentionally traded a significant volume of

On May 19, 2010, the SEC conditionally exempted, with respect to certain credit ratings and until December 2, 2010, nationally recognized statistical rating organizations ("NRSROs") from certain requirements in Exchange Act Rule 17g-5(a)(3) ("Conflicts of Interest"). Pursuant to the Order, an NRSRO is not required to comply with Rule 17g-5(a)(3) until December 2, 2010 with respect to credit ratings where: the issuer of the structured finance product is a non-U.S. person; and the NRSRO has a reasonable basis to conclude that the structured finance product will be offered and sold upon issuance

The House Financial Services Committee held a meeting entitled "A Legislative Proposal to Amend the Securities Investor Protection Act" to discuss legislation intended to reaffirm the Securities Investor Protection Corporation's ("SIPC") retail investor objectives by amending provisions of the Securities Investor Protection Act of 1970 ("SIPA"). The bill would, among other things, change the manner in which a customer's net equity is calculated and allow for a trustee to favor retail customers over institutional customers in the bankruptcy of a broker-dealer. Lofchie Comment: The attached

Federal Reserve Governor Daniel K. Tarullo gave a speech at the Americans for Financial Reform and Economic Policy Institute Conference discussing the "shadow banking system" and its impact on systemic risk regulation. The speech focused in particular on the issues presented by short-term wholesale funding, and especially the pre-crisis rise in the creation of assets that were thought to be "cash equivalents." Governor Tarullo described the short-term wholesale funding runs that began in 2007 as events that had a "cascading, self-reinforcing quality" that directly exacerbated financial stress

NASAA President, Andrea Seidt, released a statement indicating NASAA's new campaign to take advantage of technology in an effort to balance the legitimate interests of investors with the legitimate goals of entrepreneurs, and to adopt policies that are fair to both. In her remarks, President Seidt states that NASAA has consulted with a task force of the American Bar Association to "develop a proposal that peels back some of our normal guidelines to accommodate this new type of offering." As part of the proposal, NASAA has designed a multistate review process, and is developing a multistate