The National Futures Association ("NFA") released a notice to members regarding Compliance Rule 2-45 ("Prohibition of Loans by Commodity Pools to CPOs and Affiliated Entities") and a related Interpretive Notice, "Prohibition of Loans by Commodity Pools to CPOs and Affiliated Entities . " The amended Compliance Rule 2-45 and Interpretive Notice prohibit a Member CPO from permitting a commodity pool to use any means to make a direct or indirect loan or advance of pool assets to the CPO or any other affiliated person or entity. However, the Rule does not prohibit all financial transactions

The MSRB adopted a policy for the formal use of economic analysis in MSRB rulemaking which is intended to ensure that regulations support a fair and efficient municipal market, as well as balance the benefits of protections for investors and municipal issuers with the burdens placed on regulated entities. The policy incorporates the core principles of the SEC guidance on economic analysis, which include: identifying the need for a proposed rule; evaluating alternative regulatory approaches; and assessing the benefits and costs, both quantitative and qualitative. Lofchie Comment: The SEC (and

The Managed Funds Association ("the MFA") submitted a comment letter to the SEC regarding FINRA's proposed amendments to Rule 5210 ("Publication of Transactions and Quotations") which seems to expand the scope of prohibited wash sale transactions. In the letter, the MFA stated that the unintentional interaction of orders from one or more algorithms from a single firm ("self-matches") should not be a violation of Rule 5210, and regulators should recognize that, in automated trading environments, a firm's orders from unrelated algorithms may cross. Further, the MFA stated that FINRA's proposed

CFTC Commissioner Scott D. O'Malia issued a statement of support in response to the Division of Enforcement's ("DOE") decision to seek CFTC approval of the extension of omnibus orders through a CFTC vote rather than by absent objection. Commissioner O'Malia stated that he believed the absent objection process "sought to circumvent the powers of the Commission," and that he is pleased the DOE reconsidered the policy. See: Commissioner O'Malia's Statement.

CFTC Commissioner Scott O'Malia spoke at the Global Forum for Derivatives Markets regarding regulatory harmonization, among other topics. The Commissioner began by highlighting his concerns regarding the CFTC Cross-Border Guidance that was finalized in July. He stated that the guidance failed to justify its overbroad extraterritorial reach under the statute's "direct and significant standard," noting that this standard was meant to act as a limit on the CFTC's authority, not "to bring the world under the Commission's jurisdiction." Additionally, Commissioner O'Malia stated that the CFTC should