SIFMA recommended modifications to the SEC's internal business conduct standards for security-based swap ("SBS") dealers and major SBS participants. The recommendations are intended to harmonize the FINRA Supervision Rule, the FINRA CCO Rule and the CFTC CCO Rule. In its letter, SIFMA stated that consistency is important because most SBS Entities have already invested significant resources to develop controls and processes, and adopt policies and procedures to comply with those rules. SIFMA argued that harmonization of the rules will allow SBS Entities to leverage existing processes and speed

Commissioner J. Christopher Giancarlo expressed concerns that global regulators may not be able to reach an accord on the regulation of swaps execution and clearing. He delivered his remarks in a keynote address before the Annual Forex Network in Chicago. Commissioner Giancarlo argued that the made-available-to-trade ("MAT") process, in combination with the CFTC's limited execution method approach, is problematic, and cautioned that it forces swaps to trade through a limited number of execution methods even where a product lacks the liquidity needed to support such trading. Further

In a case involving the ability of a secured creditor to impose obligations on a custodian, SIFMA filed an amicus curiae brief with the Fourth Circuit Court of Appeals urging affirmation of a decision issued by the U.S. District Court for the District of Maryland. The District Court dismissed an action brought by Forest Capital LLC against BlackRock, Inc. related to BlackRock's actions as custodian of assets for People's Power & Gas LLC ("PP&G"). Forest Capital sued BlackRock for releasing funds to PP&G after PP&G instructed BlackRock to make all future payments to Forest Capital. BlackRock

The North American Securities Administrators Association's ("NASAA") Non-Traded Real Estate Investment Trust ("REIT") Task Force settled charges against a broker-dealer for failing to (i) implement an adequate supervisory system and (ii) enforce its written procedures regarding its sale of non-traded REITs. Specifically, the firm, through its agents, (i) sold non-traded REITs in excess of the REITs' prospectus standards, various state concentration limits or the firm's own guidelines, and (ii) failed to implement a supervisory system that was reasonably designed to achieve compliance with

The CFTC issued an order granting Nodal Clear, LLC, registration as a derivatives clearing organization ("DCO") based on Section 5b ("Derivatives clearing organizations") of the Commodity Exchange Act. Nodal is the first DCO to elect to become a Subpart C DCO at the time of its registration. Chair Timothy G. Massad stated that "this approval reflects the fact that Nodal has implemented policies and procedures to comply with our requirements designed to ensure that clearinghouses operate safely and that the customers are protected."