At this meeting, representatives of the Full Physical Segregation Working Group discussed with the CFTC Staff full (i) physical segregation, (ii) amendments to the bankruptcy code, and (iii) custodial arrangements. The Full Physical Segregation Working Group includes the following members: Investment Company Institute, Investment Advisers Association, Tudor Investment Corporation, Delta Strategy Group, GM Asset Management, Managed Funds Association, AQR Capital Management, LLC, Tudor Investment Corporation, State Street Global Advisors, Alternative Investment Management Association

In a February 19, 2013 interpretive letter, the Chief Counsel of the SEC's Division of Corporation Finance confirmed that over-the-counter options cleared by The Options Clearing Corporation (the "OCC") would qualify as "covered securities" under Sec. 18(b)(1)(C)of the Securities Act. The letter principally relied on an opinion by the OCC's counsel that such options were equal in seniority to OCC-issued standardized options listed on a national securities exchange named in Sec. 18(b)(1)(A) of the Securities Act or Rule 146(b) thereunder. Cross-Reference(s): See generally Blue Sky Law

The SEC staff of the Division of Corporation Finance released a report on accessing the U.S. capital markets. The report provides a general outline of various U.S. federal securities law issues applicable to "foreign private issuers," as well as additional matters these issuers may wish to take into account when considering having their securities trade in the U.S. capital markets. In addition, it includes links to various statutes and rules. Lofchie Comment : It's a very helpful little guide, but it barely mentions Sarbanes Oxley, and for many foreign private issuers that might have an

The Treasury Department published a FAQ on its website providing some background on, and plans with respect to, the use of a Legal Entity Identifier ("LEI") system for identifying parties to financial transactions. While the use of LEIs has been most visible with respect to swap data reporting (where the CFTC is currently using an interim CICI system), the Treasury FAQ is a reminder of the government's intent to push, through work with various multinational groups, for the use of LEIs more broadly. The Treasury FAQ indicates that it intends to have an LEI system launched by next month. Click

Economist Craig Pirrong ( " With 'Fixes' Like These," Streetwise Professor) analyzes the CFTC's proposed rule on protection of customer funds. If adopted, such rule will require FCMs to maintain residual interest in segregated accounts in an amount which exceeds the sum of all margin deficits for futures customers. Noting that the proposal is intended to prevent another MF Global or Peregrine, Pirrong observes that having more excess margin in customer accounts will only increase the money that a Corzine or Wasendorf might tap to cover a company's losses. Pirrong argues that the near