SIFMA, the American Bankers Association ("ABA"), and the Financial Services Roundtable ("FSR") submitted a joint comment letter to multiple federal agencies on the capital treatment of TBA transactions in mortgage securities. View letter in full here (links externally to SIFMA website).

The CFTC's open meeting scheduled for Thursday, October 25, 2012 has been cancelled. View press release in full here (links externally to CFTC website). See also: CFTC Open Meeting to Consider a Notice of Proposed Rulemaking on Enhancing Customer Protections (10/25).

The CFTC is proposing to adopt new regulations and amend existing regulations to require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures, and auditing and examination programs for futures commission merchants (FCMs). The proposal also addresses certain related issues concerning derivatives clearing organizations (DCOs) and chief compliance officers (CCOs). The CFTC's summary of the high points of the rule changes are listed below: • Amending Part 30 of the regulations to require FCMs to hold

The CFTC issued an Order filing and settling charges that a futures commission merchant (an "FCM") violated CFTC regulation 166.3 by failing to diligently supervise its employees' handling of customer accounts. In particular, the firm failed to stop one of its customers from acting as an FCM through its customer account for third parties. Lofchie Comment: Pages 4-5 of the case provide a useful bibliography of "failure to supervise" actions brought under the CEA. Cross-Reference(s): CFTC Rule 166.3 [Customer Protection Rules; Supervision]. View Order in full here (links externally to CFTC

SIFMA submitted the attached comments to the Federal Reserve Board, the FDIC, and the OCC on the proposed treatment of exposures to public sector entities (PSEs) under Regulatory Capital Rules: Standardized Approach for Risk-Weighted Assets; Market Discipline and Disclosure Requirements. View comment letter here (links externally to SIFMA website).