SEC Release No. 34-64386; SR-FINRA-2011-018 May 3, 2011 The SEC published for comment a FINRA proposal to adopt NASD Rule 2830 as FINRA Rule 2341, with significant amendments. The rule generally regulates firm's activities in connection with the sales of securities issued by registered investment companies. Among other things, the FINRA proposal would amend the NASD rule by (1) requiring firms to make new disclosures to investors on cash compensation arrangements; (2) amending the recordkeeping requirements relating to non-cash compensation; (3) eliminating a condition regarding discounted

SEC Litigation Release No. 21960 May 5, 2011 The announced that a federal district court in Florida found the founder and sole owner of a clearing firm liable for aiding and abetting his firm's violations of the Customer Protection Rule and recordkeeping rules. The court found that the defendant knew of the clearing firm's financial problems and "made a substantial effort to conceal it" through directing the firm to falsely record a $5 million money market purchase which artificially lowered the firm's reserve requirement and allowed it to withdraw more from its EBOC account. Cross References

SEC Release No. 34-64397; SR-FINRA-2011-019 May 4, 2011 The SEC declared immediately effective a FINRA proposal to amend certain FINRA rules to replace references to "OTC Bulletin Board" and "OTCBB" with "Non-NMS Quotation Service" and "NNQS." The rule changes relate to FINRA's decision to divest itself of the OTCBB (although not the technology comprising the interdealer quotation system operated by FINRA). The rule change will not be effective for at least 120 days. Cross References FINRA Rule 6500 Series, Rules 7700, 7720, 7740

FINRA RN 11-21 May 5, 2011 FINRA announced that recently approved amendments to adopt new FINRA Rule 4360, regarding fidelity bonds, will become effective on Jan. 1, 2012. The new rule is based substantially on NASD Rule 3020 and NYSE 319 and generally requires SIPC members to maintain blanket fidelity bond coverage based on the firm's net capital. Cross References SEC Release No. 34-63961 (adopting release) SEC Release No. 34-63331 (proposing release) FINRA Rule 4360 NASD Rule 3020 NYSE Rule 319

CFTC May 4, 2011 Commissioner Scott D. O'Malia, the chairman of the Technology Advisory Committee (TAC), announces that the Commission has voted to establish a Subcommittee on Data Standardization to develop recommendations regarding a standardized reference data depository representing the universe of legal and financial terms utilized in describing, defining, and valuing the various derivatives and other financial instruments which are presently and in the future may be traded on and off of regulated exchanges. The subcommittee will be chaired by Andrei Kirilenko, Chief Economist, and will