The SEC filed a complaint against a securities industry professional, Kevin L. Dowd, who is an employee of a brokerage firm, claiming that Dowd violated the federal securities laws’ prohibition on insider trading in breach of a duty he owed to his employer, the brokerage firm. Specifically, the SEC alleges that Dowd tipped material nonpublic information regarding the November 21, 2011 public announcement that Gilead Sciences, Inc. would acquire Pharmasset, Inc. to a friend and former business associate who bought Pharmasset securities and who, in turn, tipped his friend and former business

CFTC Commissioner Jill Sommers announced her resignation and made the following statement: "As I prepare to leave the Commodity Futures Trading Commission I would like to acknowledge the hard work and dedication of my fellow Commissioners and the many talented staff with whom I have had the pleasure of working for the past five years. While many challenges remain in finalizing the implementation of the Dodd-Frank Act, I have every confidence that the American public will be well-served by their continuing efforts." Lofchie Comment: Commissioner Sommers has been a consistent internal critic of

FINRA is requesting comment on a proposed schedule, a supplemental schedule for inventory positions. FINRA Rule 4524 (Supplemental FOCUS Information) requires each firm, as FINRA shall designate, to file such additional financial or operational schedules or reports as FINRA may deem necessary or appropriate for the protection of investors or in the public interest as a supplement to the FOCUS Report. Almost all FINRA members (with the exception of firms whose only positions are U.S. government securities and mutual funds) would be required to file complete inventory reports with FINRA. View

FINRA is filing with the SEC a proposed rule change to amend paragraph (c) of FINRA Rule 8312 (BrokerCheck Disclosure) to permanently make publicly available in BrokerCheck information about former associated persons of a member firm who were the subject of an investment-related civil action brought by a state or foreign financial regulatory authority that has been dismissed pursuant to a settlement agreement. (Essentially, the intent of the rule change is to make negative information always available.)The proposed rule change also would amend FINRA Rule 8312(f) to allow for the provision of

The SEC approved the November 2012 supplement to the Options Disclosure Document ("ODD"). The ODD contains general disclosures on the characteristics and risks of trading standardized options. The November 2012 supplement amends the ODD disclosure to accommodate adjustments for cash dividends and distributions for options overlying less than 100 shares. This change is intended to ensure that mini options are adjusted when the corresponding standard-sized options are adjusted. As with other supplements to the ODD, this should be read in conjunction with the current ODD, Characteristics and