PLC Financial Services October 26, 2011 The High Court judgment, dated 26 August 2011, relating to the Court's decision to dismiss a further application for an interim injunction to restrain the FSA from publishing a decision notice in respect of Swift Trade Inc., has now been published. On 31 August 2011, the FSA published the decision notice, dated 6 May 2011, that it issued to Swift Trade. The decision notice indicated that the FSA intended to fine Swift Trade £8 million for engaging in market abuse. However, Swift Trade referred the matter to the Upper Tribunal (Tax and Chancery Chamber)

October 31, 2011 On 31 October, 2011, ESMA announced the registrations of DBRS, Fitch Ratings, Moody's Investor Service, and Standard Poor's (S&P) as Credit Rating Agencies (CRAs). In order to conduct business in the European Union (EU), the EU Regulation on Credit Rating Agencies requires CRAs to be registered in compliance with the requirements of the Regulation.

Europa October 18, 2011 On 18 October 2011, the European Parliament published a press release on an agreement with the Presidency of the EU Council on the proposed regulation on short selling and certain aspects of credit default swaps (CDS). The three rules which will be introduced are: 1. A ban on naked CDS trading with a carve out for national authorities in relation to sovereign debt market dysfunction; 2. A set of powers for ESMA to restrict short selling and to act as an intermediary for any national authority wishing to introduce measures for exceptional circumstances; and 3. An

SEC Press Release No. 2011-230 October 31, 2011 The SEC and CFTC issued a joint statement that they have "determined that a SIPC-led bankruptcy proceeding would be the safest and most prudent course of action to protect customer assets." SIPC separately announced that it is initiating a liquidation of MF Global. For more information about this document, you may contact one of the following Cadwalader attorneys: Steven Lofchie; Jeffrey Robins. Cross References: SIPC Press Release (10/31/11); Lofchie's Guide to Broker-Dealer Regulation: Chapter 12, Insolvency; Lofchie's Guide to CPO/CTA

Wachovia Bank NA v. VCG Special Opportunities Master Fund, No. 10-1648-cv (2d Cir. Oct. 28, 2011) October 28, 2011 In an opinion by Judge Kearse, the Second Circuit Court of Appeals held that a hedge fund that transacted with a banking affiliate of a broker-dealer in credit default swaps which were not "recommended" by the broker-dealer did not qualify as a "customer" for purposes of the FINRA arbitration rules. The court distinguished two recent precedents in which a "customer" relationship was found, noting the absence in this instance of a recommendation by the broker-dealer or a direct