On May 29th, the SEC issued findings and imposed a ten million dollar fine against NASDAQ as a result of NASDAQ's technical problems in connection with the Facebook IPO and NASDAQ's responses to those problems. See:NASDAQ Charged for Failures during Facebook IPO. Chris Clearfield of System Logic is writing a series of articles that examine the technical details of the error, NASDAQ's decision making in response to that error, and the broader implications, from the standpoint of technology and processes around technology, of the SEC's findings which impose a disciplinary action against NASDAQ

FINRA issued a new investor alert, Alternative Funds Are Not Your Typical Mutual Funds, to inform investors considering an investment in alternative funds to be aware of the unique characteristics and risks of these investments. According to the alert, as alternative funds are capable of investing in assets such as global real estate, commodities, leveraged loans, startup companies and unlisted securities, they potentially offer exposure beyond traditional stocks, bonds and cash. For customer protection purposes, FINRA urges investors considering alternative funds to ensure that they fully

FINRA released a podcast on June 10, 2013, focusing on how its consolidated Communications with the Public rule applies to social media and personal electronic devices. The podcast discussed that, while social media extends the ability to communicate, both FINRA and SEC rules require that firms must be able to retain records of those communications. Firms should also consider prohibiting sensitive electronic communications unless a registered principal has previously approved the content. Similarly, firms should be cautious about third-party posts. This rule also applies to personal electronic

In August 2012, the NFA's Board voted unanimously to ratify a proposal to amend the NFA's Articles of Incorporation to increase the size and modify the structure of the Board to integrate swap dealer and major swap participant members into the NFA's governance structure. The amended Articles increase the Board's size by adding seven swap participants to the Board. Because of the NFA's role in the oversight of the OTC derivatives market, the NFA is giving its newest membership categories a representative voice in the organization. Three additional swap participant representatives are expected

The CFTC issued an Amended Order which expands the list of permitted issuers of Legal Entity Identifiers ("LEIs") to include various non-U.S. organizations. This will allow, at least over time, an entity that does business internationally to have only one LEI, as opposed to needing an LEI for each jurisdiction in which it does business. See: Amended Order: Legal Entity Identifier and CFTC Press Release.