Citigroup Global Markets Inc. ("CGMI") was sanctioned by the Massachusetts State Securities Division ("MSD") on the basis, according to the disciplinary action, of its failure to supervise two research analysts, described in the disciplinary action as the Senior Analyst and the Junior Analyst. The reasons for the disciplinary actions against each were unrelated, as described below. In the case of the Senior Analyst, he responded improperly to a question asked by a reporter without seeking prior approval from the firm's Compliance Department. When his improper response was uncovered by a

SEC Chairman Mary L. Schapiro delivered a speech at the George Washington University Center for Law, Economics and Finance's Fourth Annual Regulatory Reform Symposium on Dodd-Frank. She praised the purposes of the statute in general (and did not discuss the implementation process beyond stating that "the SEC has now proposed substantially all of the rules that create" the regulation of security-based swaps). The principal topics of her speech were: Derivatives regulation; Asset-backed securities; Credit rating agencies; and Executive compensation. View speech in full here (links externally to

The SEC approved amendments to FINRA Rule 4210 (Margin Requirements) related to option spread strategies, maintenance margin requirements for non-margin eligible equity securities, "free-riding," "exempt accounts," and stress testing in portfolio margin accounts. The amendments related to option spread strategies became effective on October 26, 2012. All other amendments to FINRA Rule 4210 described in this Notice will become effective on January 23, 2013. The principal amendments are as follows: the margin requirements on certain option positions are more closely tied to maximum potential

The MSRB reminds brokers, dealers, and municipal securities dealers of the November 1, 2012, effective date of amendments to MSRB Rule G-34 concerning the use of the term "not reoffered," or "NRO," on communications about new issues of municipal securities. The amendments will prohibit any dealer from using the term "not reoffered" or other comparable term or designation, such as the commonly used designation of "NRO," without also including the applicable price or yield information about the securities in any of its written communications, electronic or otherwise, sent by or on behalf of the

The CFTC's Division of Swap Dealer and Intermediary Oversight ("DSIO") announced the issuance of time-limited no-action relief for swap dealers ("SDs") and major swap participants ("MSPs") concerning certain recordkeeping obligations under Part 23 of the CFTC's Regulations. The no-action letter will delay until March 31, 2013, the compliance date for the following provisions: (1) The requirement that SDs and MSPs make and keep records of all oral communications related to pre-execution swap trade information (and communications that lead to the conclusion of a related cash or forward