There were oral arguments on Friday in the ICI v. CFTC case that (combined with the recent decision in the ISDA suit vs. the CFTC, and the ongoing discussions with the CFTC over the regulation of securitization and like vehicles [see related Cadwalader C&F memo]) caused me to look at the case documents (the main ones are linked below). The general background of the case is as follows: Investment Company Institute et al. v. Commodity Futures Trading Commission Plaintiffs: Investment Company Institute (ICI) and U.S. Chamber of Commerce Defendant: U.S. CFTC Amicus: Mutual Fund Directors Forum

The High-level Expert Group on reforming the structure of EU banking has presented its recommendations for further reforms of the banking sector. Suggestions in the report cover the five following areas: - Mandatory segregation of proprietary treading and other high-risk trading activities; - Separation of activities conditional on the recover and resolution plan; - Amendments to the use of bail-in instruments as a resolution tool; - Capital requirements on trading assets and real estate related loans; and - Increased governance and control of banks.

Further to the reforms of the UK financial services regulatory structure, the Financial Services Authority is seeking public comment on the authorization and regulation of financial services businesses by the new Prudential Regulation Authority (the #8220; PRA#8221;) and the Financial Conduct Authority (the #8220; FCA#8221;). In particular, the paper is seeking industry opinion on separating the current list of controlled functions for firms which will be regulated by both the PRA and FCA (in general, systemically-important firms). Comments should be submitted by December 7, 2012.

The Financial Services Authority has launched a consultation which sets out a number of suggestions for amendments to the Listing Rules, as a follow-up to its consultation of January 2012. The proposals focus on two main areas: - clarifying the operation of the free-float provisions, which allow the FSA to consider a free float of below 25% if there is sufficient liquidity; and - greater corporate governance requirements for companies with a dominant shareholder. Responses to the consultation should be submitted by January 2, 2013.

The Economic and Monetary Affairs Committee of the European Parliament has approved new uniform trading rules intended to apply to the vast majority of financial products and market participants. The proposals will take the form of updates to the current MiFID regime. Under the proposals, firms structuring investment products will be required to tailor and market them to defined groups of clients. All market players and trading venue operators will also be required to set out criteria for fair and orderly trading, efficient execution of orders and on instruments may be traded on their systems.