This advisory opinion stems from a request for guidance from SIFMA and concerns the application of the fiduciary and prohibited transaction provisions of ERISA to certain "cleared swap" transactions conducted pursuant to provisions of the Dodd-Frank Act. It addresses: Whether clearing members are fiduciaries in exercising contractually determined rights in the event of a plan default or other specified events; Whether clearing members and CCPs are parties in interest to plans; and Whether the services performed, the guarantee of customer positions, and aforementioned exercise of rights by

FINRA filed with the SEC a proposed rule change to amend FINRA rules in accordance with the provisions of the Regulation NMS Plan to Address Extraordinary Market Volatility. The proposal is described by FINRA as combining a so-called "Limit Up-Limit Down" rule with trading pauses. The rule amendments would be implemented on a one-year pilot basis. See: Text of Proposed Rule Change (links externally to FINRA website).

On November 23, 2012, the Federal Reserve Board published a document requesting public comment on a policy statement on the approach to scenario design for stress testing that would be used in connection with the supervisory and company-run stress tests conducted under the FRB’s regulations issued pursuant to the Dodd-Frank Act and the FRB’s capital plan rule. The current notice contains instructions omitted from the prior notice. Comments Due: February 15, 2013. Cross-Reference(s): Dodd-FrankSection 165 ("Enhanced supervision and prudential standards for nonbank financial companies supervised

SEC Chairman Elisse Walter gave opening remarks at the Foreign Bribery and Corruption Training Conference. Here are some of her main points: Chairman Walter acknowledged the diversity of the financial regulatory agencies around the globe and their different purposes and laws, but emphasized the importance of fair and honest financial markets for economic growth which can only be achieved by collaboration; Functioning financial systems are not only a question of complying with the law, but also a matter of nation-building; Stable financial markets create a cycle of international trade that

The Joint Forum released a consultative report on mortgage insurance which analyzes the interaction of mortgage insurers with mortgage originators and underwriters. The report makes recommendations directed at policymakers and supervisors, and aims to reduce the likelihood of mortgage insurance stress and failure in the worst tail events. Thomas Schmitz-Lippert, Chairman of the Joint Forum, urged the adoption of these recommendations, stating they will help strengthen and reinforce the oversight of mortgage insurers and thereby increase their resilience over the long term. Lofchie Comment