Industry groups, including SIFMA, the FIA, and the FSR submitted a joint comment letter to the SEC regarding SEC rulemaking proposals relating to cross-border security-based swap activities, reporting of security-based swaps, and registration of SBSDs and MSBSPs. While the industry groups stated support for many elements of the SEC's proposal, the letter highlighted two significant concerns including: The lack of harmonization with the CFTC's cross-border approach; and SEC's proposed "conducted within the United States" test. On the harmonization point, the comment letter said that, while the

NFA submitted proposed amendments to Section 4 ("Financial Requirements and Treatment of Customer Property") of NFA Financial Requirements. The proposed amendments would modify Phase 2 of the daily segregation monitoring system. Phase 2 will require non-clearing FCMs to instruct all clearing FCMs carrying its customer omnibus accounts to report end-of-day balances in those accounts to NFA and/or the CME. See: Text of Proposed Rule Change.

NFA issued amendments to Section 10 ("Late Financial Transactions") and Section 13 ("Forex Dealer Daily Reports") of NFA Financial Requirements Rules and Compliance Rule 2-48 ("Forex Member Daily Trade Data Reports"). The proposed amendments would increase fees for late financial and regulatory filings from $200 to $1,000 each business day the filing is late. See: Text of Proposed NFA Rule Change.

FINRA found that Morgan Stanley failed to use reasonable diligence to ensure that the purchase or sale price of debt securities to customers was "as favorable as possible under current market conditions" in 116 customer transactions involving corporate and agency bonds. Additionally, in 165 transactions involving municipal bonds, Morgan Stanley allegedly failed to purchase or sell bonds at prices reasonably related to the fair market value of the subject security. FINRA fined the firm $1 million and ordered $188,000 in restitution plus interest. Lofchie Comment: This is a bit of an odd

Nasdaq OMX Group Inc., the parent company of Nasdaq, issued a statement explaining that it halted trading after learning that the Securities Information Processor, or SIP, which consolidates stock prices, was not disseminating price quotations. The company stated that the technical issues were resolved and that it will work with other exchanges, regulators, and market participants to investigate the relevant issues. See: Nasdaq OMX Press Release.