The SEC obtained an emergency court order to freeze assets in a Switzerland-based trading account that was used to reap more than $1.7 million from trading in advance of last week's public announcement about the acquisition of H.J. Heinz Company. The SEC alleges that the unknown traders were in possession of material nonpublic information about the impending acquisition when they purchased out-of-the-money Heinz call options the day before the announcement. See: SEC Complaint. See also: SEC Press Release.

SIFMA has submitted a comment letter to the MSRB regarding the MSRB's initiative to review its rules and interpretive guidance. SIFMA commended the MSRB for proactively soliciting comments to determine whether any rules or guidance should be revised or restated due to changes in market practices or conditions, or to be more closely aligned with the rules of other self-regulatory organizations or government agencies so as to promote more effective and efficient compliance. SIFMA's comments cover: Guiding themes that should direct MSRB rulemaking; and Specific suggestions to revise specific

The hearing will take place on Wednesday, February 27, at 2:30 p.m. CFTC Chairman Gary Gensler will be the only witness for the hearing. See: Senate Committee on Agriculture Notification.

The NFA has submitted a comment letter to the CFTC regarding the CFTC's proposal to enhance customer protections afforded customers and customer funds held by futures commission merchants ("FCMs") and derivatives clearing organizations ("DCOs"). The focus of the NFA's letter is on the requirements that the CFTC would impose on the NFA and the other DSROs in respect of their programs to audit FCMs. Lofchie Comment: Although somewhat gently phrased, the comment letter is in many respects quite critical of the CFTC's proposal. For example, the comment describes an amendment to Rule 30.7 as

The MFA has submitted a comment letter to the CFTC on its proposed rulemaking on "Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations" (see: 77 FR 67865). The MFA letter begins by stating that the perspective of its member firms is as customers of FCMs who are at risk of losing money as a result of the default of an FCM. The letter expresses MFA's concern with the recent MF Global and Peregrine defaults and applauds the CFTC for recognizing the potential weaknesses in the current customer protection regime, as