CFTC Dodd-Frank Rulemaking The CFTC proposes certain substantive requirements on the resolution of conflicts of interest, in order to further implement core principles applicable to derivatives clearing organizations, designated contract markets, and swap execution facilities. Such substantive requirements address reporting, transparency in decision making, and limitations on use or disclosure of non-public information, among other things. For DCOs and DCMs, the Commission also proposes regulations to implement core principles concerning governance fitness standards and the composition of

FINRA Information Notice FINRA published an information notice to advise firms of the recent increase in the fee rate on transactions imposed under § 31 of the Exchange Act. Date January 6, 2011 Cross References (links may require a Cabinet subscription) Exchange Act § 31

SEC Release (Enforcement) The SEC announced a settled administrative proceeding against a broker for his alleged fraud in churning the accounts of a charitable organization. The release alleges that the accounts paid approximately 10.8% of their market value in transaction fees over a 13 month period, caused by excessive trading and undisclosed and excessive markups and markdowns. Document Number SEC Release 33-9170, 34-63661, IC-29548 Date January 6, 2011 Cross References (links may require a Cabinet subscription) SEC PR 2011-2 Securities Act § 17(a) Exchange Act § 10(b) Exchange Act Rule 10b

SEC: Rule 15c3-5 (Risk Management Controls for Brokers or Dealers with Market Access) The SEC published on its web site a guide for small firms to comply with recently-adopted Rule 15c3-5 under the Exchange Act. The rule requires firms to have risk controls in connection with their market access. The guide provides a concise summary of the rule from the SEC staff. Please contact any of the following Cadwalader attorneys if you have any questions about this item: Steven Lofchie; [email protected] Glen Barrentine; [email protected] Date January 6, 2011 Cross References (links may

News Article Although the CFTC was supposed to set position limits on agriculture products and the like weeks ago, it has been at an impasse, as the agency's commissioners argue over just how tough the limits should be. However, the stalemate may soon be over. On Tuesday, a compromise proposal finally emerged. Commissioner Bart Chilton, the leading proponent of immediately enforcing strict limits, refused to support an earlier phased-in proposal that he found too weak, has now agreed to a temporary position "points" plan, which would alert the agency when a trader becomes overexposed