AIMA CEO Andrew Baker will step down at the end of the year. Mr. Baker has been CEO since the beginning of 2009, having been Deputy CEO previously since 2007. See: Press Release.

The Chicago Board Options Exchange ("CBOE") agreed to pay $6 million in the settlement of an SEC enforcement action. In its press release relating to the settlement, the SEC stated that this was the first time the SEC had assessed a financial penalty against an exchange for violations related to the exchange's regulatory oversight, and characterized previous monetary penalties against exchanges as relating to "misconduct on the business side of their operations." While the SEC's action against CBOE included a number of regulatory and compliance failures, the most serious charge against CBOE

The SEC and FINRA issued a warning to investors regarding a sharp increase in e-mail linked to "pump-and-dump" stock schemes designed to trick unsuspecting investors. Pump-and-dump promoters frequently claim to have "inside" information about an impending development, but once the stock price is "pumped" up by the buying frenzy they create through mass e-mail pushes, they "dump" their shares by selling them, and investors are left with a near worthless stock. Investors should always be wary of unsolicited investment offers in the form of an e-mail from a stranger. See: Investor Alert; Press

The MSRB announced that Michael L. Post will join the group as Deputy General Counsel. Mr. Post, who will report to MSRB General Counsel Gary Goldsholle, will oversee enforcement support and professional qualifications for regulated entities. Mr. Post is currently serving as senior litigation counsel in the appellate group of the SEC's Office of the General Counsel. See: Press Release.

MSRB released a notice explaining that, due to the effects of federal sequestration, the IRS will be reducing refundable credits payable to issuers of certain direct-pay municipal bonds. Dealers in particular must fully understand their customer protection obligations under MSRB rules in connection with such transactions because subsidy reductions have the potential to affect investors buying, selling or holding direct-pay bonds for which subsidy payments have been reduced. See: MSRB Notice 2013-13.