In a letter to the SEC, Rep. Edward Markey (D-Mass.) has suggested that, because of a 1989 law he co-sponsored, the agency has the ability to slow down, or even stop, high-frequency trading. Rep. Markey has referenced a law that gives the SEC power to "limit practices which result in extraordinary levels of volatility." Lofchie Comment: I worry about the increased assertions that high-frequency trading should be banned as a bad thing without any acknowledgement of quite significant regulatory studies to the effect that HFT has a generally positive effect on financial markets. The letter

The International Organization of Securities Commissions ("IOSCO") published a final report on Suitability Requirements with respect to the Distribution of Complex Financial Products, which sets out principles relating to the distribution by intermediaries of complex financial products to retail and non-retail customers. The report introduces nine principles that cover the following areas related to the distribution of complex financial products by intermediaries: Classification of customers General duties irrespective of customer classification Disclosure requirements Protection of customers

The U.S. Department of Treasury and the Internal Revenue Service published comprehensive final regulations implementing the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (“FATCA”). The final regulations build on intergovernmental agreements (“IGAs”) that the Treasury has negotiated with several countries and coordinate definitions, exemptions and due diligence obligations with those set forth in such IGAs. The final regulations also expand and clarify the treatment of certain categories of low-risk institutions, such as governmental entities and

Federal financial regulatory agencies issued a final rule that establishes new appraisal requirements for "higher-priced mortgage loans." This rule implements the Truth in Lending Act amendments under the Dodd-Frank Act. The rule exempts several types of loans, such as qualified mortgages, temporary bridge loans and construction loans, loans for new manufactured homes, and loans for mobile homes, trailers and boats that are dwellings. The rule also has exemptions from the second appraisal requirement to facilitate loans in rural areas and other transactions. The rule is being issued by the

The CFTC is extending the time period for which it is reviewing a request from the Chicago Mercantile Exchange Inc. ("CME") for approval of proposed CME Rule 1001 submitted pursuant to CFTC Rule Section 40.5. Essentially, the proposed CME Rule would require that swaps cleared on the CME be reported to the Swap Data Repository ("SDR") maintained by the CME. As we had previously reported, the CFTC would have originally required that the parties to a swap be able to select the SDR to which their data would be reported. This CFTC position had been challenged in court by the CME, and, in order to