The SEC unanimously proposed new rules to require certain key market participants to have in place comprehensive policies and procedures surrounding their technology. The SEC's proposal, which is called "Regulation SCI," would replace the current voluntary compliance program with rules whose violation may be the subject of enforcement actions. SROs, certain alternative trading systems, plan processors, and certain exempt clearing agencies would be required to design, develop, test, maintain, and survey their key systems. The proposed rules would require them to ensure that their core

The CFTC recently approved amendments to NFA Bylaw 1301(f) to adopt an annual membership dues structure for SDs and MSPs. Large financial institutions may be required to pay dues of $1 million a year. View Notice in full here (links externally to NFA website).

ICI filed an emergency motion seeking expedited consideration of its appeal of a federal district court's decision upholding CFTC amendments to Rule 4.5, which require advisers to certain SEC-registered investment companies ("RICs") to (a) register as CPOs by December 12, 2012 and (b) comply with various regulatory requirements within 60 days after the effective date of a "harmonization" rule that has yet to be issued. The three court filings attached represent the emergency motion, the CFTC's opposition to the motion, and ICI's reply. See: ICI v. CFTC - Emergency Motion See also: Response in

The SEC charged a California-based lawyer for fraudulently producing baseless legal opinion letters for penny stocks through his website without doing the required due diligence by researching and evaluating the individual stock offerings. These opinion letters contained false and misleading statements, and facilitated the sale of securities in violation of the registration sections of the federal securities laws. The lawyer is being charged with violating Sections 5(a), 5(c), and 17(a) of the Securities Act, as well as Section 10(b) and Rule 10b-5of the Exchange Act. View Complaint in full

In his speech, CFTC Commissioner Scott O'Malia discussed the reasons he chose to abstain from participating in the CFTC's approval of CME Rule 1001. Commissioner O'Malia stated he believes that the CFTC failed to make any meaningful distinction between swap transactions submitted for clearing and those which were entered into on a bilateral basis and not cleared through a derivatives clearing organization. O'Malia also stated his belief that the ambiguity in Part 45 is unacceptable, and that Part 45 must be amended to reconcile its requirements with existing CFTC regulations and industry