SEC Press Release 2011-89 April 7, 2011 The SEC and CFTC published a joint staff study, as required by the Dodd-Frank Act, on the feasibility of requiring standardized computer-readable algorithmic descriptions to describe complex and standardized financial derivatives. The study concluded that current technology is capable of representing derivatives in a common set of computer-readable descriptions, and would be precise enough to use both for calculation of exposures and to serve as part of a binding legal contract. The study also notes that before this would be possible, universal

FINRA AWC Letter No. 20080117193-01 April 12, 2011 FINRA announced that it fined a broker-dealer for deficiencies in its structured products business, including (1) unsuitable sales of reverse convertible securities; (2) inadequate supervision of sales practices; and (3) inadequate supervision of accounts funded loans from its affiliated bank. FINRA alleges that the BD, despite increased sales in structured products, failed to implement processes for reviewing or approving any particular structured product prior to offering to customers. In addition, FINRA alleges that the firm did not have

FINRA AWC Letter No. 2008015443301 April 11, 2011 FINRA announced that it fined a broker-dealer $2 million and ordered it to pay $8.25 million in restitution in connection with allegedly misleading investors as to the "principal protection" feature of certain Lehman-issued notes. In particular, FINRA alleges that the firm failed to properly emphasize to investors that the notes were unsecured obligations of Lehman when they sold them to investors in the summer of 2008. FINRA also cited the firm's failure to advise sales personnel of signs of weakness in Lehman's financial strength, and that it

SEC Release No. 34-64287; SR-NYSE-2011-15 April 8, 2011 The SEC published for comment an NYSE proposal to amend NYSE Rule 1401 to reduce the initial trading market value requirement for debt securities from $10 million to $5 million. Cross References NYSE Rule 1401

February 2, 2011 The NYSE fined a broker-dealer nearly $400,000 for a number of violations, including, (1) violation of Rule of Rule 411(b)(1) for entering numerous principal odd lot market orders without aggregating them into round-lots; (2) violation of Rule 410A by failing to submit complete and accurate information on blue sheet response requests; (3) violation of Rule 342 by failing to reasonably supervise and implement controls designed to comply with NYSE rules as to odd-lot orders and blue sheet submission. The action also addresses similar violations by the firm on NYSE Arca. Cross