The NFA has levied a $500,000 fine against Kent Charles Roberts II ("Roberts"), a former associated person ("AP") and principal of First Quadrant LP ("First Quadrant"), an NFA Member CTA and CPO located in Pasadena, California. NFA has also levied a $250,000 fine against First Quadrant. The Decision, issued by the NFA's Business Conduct Committee, is based on a Complaint filed on March 21, 2013, and a settlement offer submitted by First Quadrant and Roberts. The Complaint alleged that Roberts violated just and equitable principles of trade under NFA Compliance Rule 2-4 by allowing individuals

At a March 20th hearing held by the House Ways Means Subcommittee on Select Revenue, a panel of tax academics, accountants, and tax policy advocates and practitioners addressed the concept of applying mark-to-market taxation to many financial products, as proposed in a draft tax reform proposal released by House Ways Means Chairman Dave Camp (R-Mich.) in January. The hearing was called to address technical issues raised by the financial products tax reform proposal that would, among other provisions, require most derivatives (except those used in certain hedging transactions) to be marked-to

Effective Monday, June 3, 2013, FINRA will be modifying the protocol for reporting cancellations and reversals of OTC trades in equity securities for firms that use the FINRA/Nasdaq Trade Reporting Facility, OTC Reporting Facility and Alternative Display Facility. Click here to view Trade Reporting Notice in full (links externally to FINRA website).

The MFA has submitted a comment letter to the SEC in response to its proposed implementation ofJOBS Act Section 201 ("Modification of Exemption"), in which the MFA responded to recommendations proposed by the SEC's Investor Advisory Committee for the SEC to make certain changes to the private offering framework and related regulations in connection with its implementation of the JOBS Act. The MFA's principal recommendations and commendations were as follows: agreed that the filing of Form D, or some other regulatory form, be made a condition to relying on Regulation D, provided that an issuer

The OCC, FRB and FDIC have published in the Federal Register an updated supervisory guidance on leveraged lending. According to the regulators, such lending has been increasing since 2009 after declining during the financial crisis. In the updated guidance, particular attention is given to the following areas: Establishing a sound risk-management framework, Underwriting standards, Valuation standards, Pipeline management, Reporting and analytics, Risk rating leveraged loans, Participants, and Stress testing. Click here to view our original story on the guidance. See: 78 FR 17766.