The SEC announced that Thomas P. Flanagan - a former Deloitte partner - pleaded guilty to one count of criminal securities fraud for engaging in insider trading and has been sentenced to 21 months of incarceration and a $100,000 penalty. Click here to view litigation release in full (links externally to SEC website).

The Enhanced Disclosure Task Force, which was established at the initiative of the Financial Stability Board, has published a report on its recommendations on ways in which large international banks can enhance their risk disclosure practices. The report identifies seven fundamental principles for enhancing risk disclosures, including (i) comparability among banks, (ii) consistency over time and (iii) clear, balanced and understandable communications. Lofchie Comment: In large part, this report is directed at regulators in the various relevant jurisdictions, as material implementation of the

CFTC Commissioner Scott D. O'Malia opened public review and discussion on three significant issues in his speech before the Technology Advisory Committee ("TAC") in Chicago, Illinois. These issues are: (i) High-Frequency Trading ("HFT") , (ii) technology used to protect customer funds, and (iii) technology used for FCM and CCP risk management. Commissioner O'Malia said that he intends to put an end to confusion as to the CFTC's requirements by opening public discussion of technology issues. As to HFT, O'Malia asked TAC members to carefully review the work previously done on the subject and

In preparation for the meeting of G20 ministers and governors in Mexico City on November 4th – 5th, the Basel Committee on Banking Supervision has published its report on Basel III implementation, which covers all three levels of the Committee’s Basel III implementation review program: (i) ensuring timely adoption, (ii) assessing regulatory consistency and (iii) assessing the consistency of outcomes. The Chairman of the Committee noted that significant progress has been made since the last report to the G20 leaders was published in 2012, particularly as many Committee members now have final

The development and application of new technology is arguably causing the most rapid changes in financial markets. High-Frequency Trading ("HFT") and algorithmic trading ("AT") have particularly attracted controversy relating to their possible benefits and risks. The International Foresight Project was commissioned to address two critical challenges: (i) how rapid technological developments, coupled with the ever-increasing complexity of financial trading and markets, affect HFT/AT on financial markets; and (ii) the lack of evidence and analysis to inform the development of new regulations