Address by Commissioner O'Malia CFTC Commissioner Scott O'Malia addresses two issues: i) MF Global and ii) high-frequency trading. With respect to MF Global, O'Malia argues that the CFTC's rulemakings with respect to investment of customer funds and protection of cleared swaps customer property does not address what happened in MF Global-"I'm not aware of any evidence that the MF Global shortfall was related to investments of customer funds." He also states that the CFTC needs to stop addressing potentially fundamental issues through ad hoc actions. With respect to high frequency trading, O

CFTC Press Release 6172-12 The CFTC issued a Consumer Advisory warning the public to beware of promises of easy profits to be made from rising prices in gold, silver, platinum, palladium, and other precious metals. The Advisory also recommends that the public be alert to companies that sell investments in precious metals based on sales pitches claiming that a person can make a lot of money, with little risk, by purchasing metals through a financing agreement. The Advisory describes how some precious metals companies may use fraudulent tactics to induce customers to invest.

CFTC Press Release 6171-12 The CFTC released findings of limited reviews of futures commission merchants (FCMs) to assess compliance with requirements to segregate customer funds pursuant to Section 4d of the CEA. The limited reviews also covered the FCMs' obligation to set aside in secured accounts funds deposited by customers for trading on foreign boards of trade under Section 4(b) of the Act and Part 30 of the Commission's regulations. As of the review date for each FCM, all of the FCMs were in compliance with the segregation or Part 30 secured amount requirements. The FCMs held a total of

Trustee's report summarizing the status of this SIPA Proceeding and the material events that have occurred in the past sixty days. It will be supplemented and updated with future sixty day reports, and more substantial interim reports every six months. For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie, Mark Ellenberg, Athena Eastwood, Christopher Updike, Assia Damianova, and Robert Zwirb Cross References: CEA Section 4d; CFTC Rules 30.7 Part 190; Lofchie's Guide to CPO/CTA Regulation: Chapter 12, Insolvency.

Presentation by Trustee to customers and clients regarding the status of the MF Global bankruptcy proceeding. For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie, Mark Ellenberg, Athena Eastwood, Christopher Updike, Assia Damianova, and Robert Zwirb Cross References: CEA Section 4d; CFTC Rules 30.7 Part 190; Lofchie's Guide to CPO/CTA Regulation: Chapter 12, Insolvency.