The SEC charged Boston-based dark pool operator eBX LLC with failing to protect the confidential trading information of its subscribers and failing to disclose to all subscribers that it allowed an outside firm to use their confidential trading information. The SEC order states that eBX operates the alternative trading system LeveL ATS, and failed to disclose in required SEC filings that it allowed LeveL subscribers' unexecuted order information to be shared outside of LeveL. Lofchie Comment: This disciplinary action raises some very serious questions as to the protection of customer trading

NASAA announced the publication of its quarterly newsletter, NASAA Insight. The contents of the current newsletter, designed to keep readers informed of recent NASAA activities, are as follows: A. Heath Abshure of Arkansas Takes NASAA Helm NASAA Urges Caution as SEC Mulls over Solicitation Rule [i.e., the JOBS ACT] Broker-Dealer Compliance Native American Outreach Top Investor Traps Protecting Senior Investors NASAA on JOBS Act Implementation Abshure: NASAA to Add Offense to Defense [about preemption and the role of state regulation] Photo Gallery: NASAA Conference Focuses on Innovation

In this speech at the SEC Technology Roundtable, Chairman Schapiro states that the two basic concerns on which the SEC should be focusing are: market structure (e.g., multiple execution venues, the presence of high-frequency trading, and dark pools); and market infrastructure (i.e., the technology that undergirds trading activity). The roundtable focused more specifically on infrastructure. This was, according to Schapiro, not only because of infrastructure's importance, but also because of a "worry that this issue is at risk of being lost and subsumed by the broader debates regarding market

The SEC Division of Corporation Finance sent the attached letter to companies whose draft registration statements were under staff review. The intention of this letter is to explain how these companies can transition to electronic filing via EDGAR. View letter here (links externally to SEC website).

NFA recently amended NFA Bylaw 301 to require NFA member FCMs, IBs, CPOs and CTAs and their APs which engage in swaps activity that is subject to CFTC jurisdiction, to be approved by NFA as a swaps firm or swaps AP. The amendments to Bylaw 301 are effective January 1, 2013. However, a member may request swap designation for itself and its APs effective immediately. NFA also amended Registration Rules 401 and 402 to provide relief from the proficiency requirements for the swaps APs of these members. The amendments to Registration Rules 401 and 402 are effective immediately. View notice in full