The SEC settled civil fraud charges against two former executives of Mercury Interactive, LLC, arising from an alleged scheme to backdate stock option grants and other alleged misconduct. See: Litigation Release No. 22623

MFA submitted a comment letter to the SEC on its proposed rules on "Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major Security-Based Swap Participants and Capital Requirements for Broker-Dealers". MFA emphasized the following recommendations to the SEC: (i) the desirability of an internationally uniform set of margin requirements; (ii) MFA's preference for a single compliance date for imposition of margin requirements; (iii) that the SEC mandate that security-based swap dealers ("dealers") transfer variation margin to clients; (iv) that dealers be

CFTC staff met with representatives of British Petroleum to discuss the firm's calculations around the $8 billion de minimis exemption from swap dealer registration. Lofchie Comment: Numerous firms are struggling to do these calculations given the uncertainty of both (i) what is a "swap" and (ii) what activities constitute "dealing." Of course, this is to say nothing of the still open question as to who is a "U.S. person." Click here to see more details on the meeting.

SEC Chairman Elisse Walter delivered remarks on informed risk-taking for investor protection and confidence. In her speech, the Chairman urged legislators and regulators to maximize stability and minimize risk, enhance capital requirements, minimize moral hazard and increase scrutiny by regulators. Walter states that regulators should protect investors against fraud and ensure that those who invest are sufficiently sophisticated and able to bear the risk. Among the specific issues raised by Chairman Walter were (i) that the SEC have sufficient tools to detect fraud and insider trading, (ii)

The SEC National Exam Program ("NEP") published its examination priorities for 2013. The NEP establishes certain general priorities, as well as specific priorities applicable to each of (i) investment advisers and investment companies, (ii) broker-dealers, (iii) clearing and transfer agents and (iv) "market oversight" (particularly the securities exchanges, FINRA and MSRB). The NEP also identifies a number of policy priorities (including rulemaking around the JOBS Act). NEP priorities include the following: The market-wide priorities are identified as (i) fraud detection and prevention, (ii)