SEC Commissioner Gallagher delivered a speech at Columbia Law School focusing on corporate penalties in enforcement actions, which he described as a "vexing" issue for the SEC. He referenced the recent settlement from the London Whale case, which cost JPMorgan $920 million. He explained further that the money for this penalty comes not from the bank, but from the shareholders who were presumably already the victims of the events and were now "victimized" again by the settlement. The SEC has been sharply divided on the appropriateness of penalizing public companies, Commissioner Gallagher

SEC Chair Mary Jo White spoke at the Managed Funds Association ("MFA") Outlook 2013 conference, addressing some of the recent changes that have been brought about by the JOBS Act and hedge fund registration. In her remarks, she cited the following as JOBS Act benefits in the industry: Enabling managers to communicate with the public and talk about their businesses is an important step in improving transparency and providing substantial benefit to investors, regulators and the public. Managers can provide accurate information to media or a third party. Investors can benefit from increased

NASAA has published the Fall 2013 edition of its NASAA Insight newsletter. The following items are covered in this edition: Ohio Securities Commissioner Andrea Seidt Pledges Pursuit of "Smart Regulation" as NASAA President NASAA Outlines Plan for Streamlined Multi-State Review of JOBS Act Offerings to Senate Panel Top 10 Investor and Small Business Threats NASAA Strongly Supports Investor Choice Act of 2013 Enforcement Report Showcases Vital State Investor Protection Role Regulation A+ in the Spotlight Inside NASAA's Coordinated Review Proposal NASAA Asks Congress to Take "Balanced Approach"

The Department of Justice ("DOJ"), along with federal and state prosecutors, has announced a $13 billion settlement with JPMorgan. The settlement is the largest known case to date arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities ("RMBS"). See: DOJ Press Release; DOJ Statement of Facts; List of RMBS Covered by the Settlement.

The CFTC has released the results of a rule enforcement review completed by the Division of Market Oversight ("DMO") evaluating the North American Derivatives Trading Exchange Inc.'s ("Nadex") compliance with Core Principles 2 ( Compliance with Rules) and 12 ( Protection of Market Participants), which relate to an exchange's trade practice surveillance program. Nadex is a specialized exchange that trades binary options and bull spreads. The DMO found that Nadex maintains an adequate trade practice surveillance program, including adequate staff, systems, investigatory work and sanctions, but