The SEC voted three to two (with Commissioners Gallagher and Piwowar dissenting) to propose rules that would require companies to disclose the relationship between their executive compensation and financial performance. According to the SEC majority, the proposed rules implement a requirement mandated by Dodd-Frank and would not only provide transparency but also "allow shareholders to be better informed when they vote to elect directors and in connection with advisory votes on executive compensation." The proposed rule would require a company to disclose its executive pay and performance

A recent CNBC article reported that shares of the social media company Twitter closed 18 percent lower after the company's unfavorable quarterly report was disclosed inadvertently during trading. Twitter's quarterly report, which was supposed to be published after the stock market closed on April 28, 2015, was obtained early and posted by the financial analytics firm Selerity. Selerity's posting sent Twitter shares plunging by almost 20 percent. Trading stopped briefly to allow Twitter to disseminate its results, which only steepened the drop. About 25 minutes after Selerity's posting, Twitter

In the latest installment of the Energy Metro Desk series "Around the Desk," editor-in-chief John Sodergreen discusses the recent charges against Navinder Singh Sarao and the whistleblower award given by the SEC to a compliance officer. Regarding recent CFTC charges against Navinder Singh Sarao, Mr. Sodergreen noted the differences between the government press release and the actual complaint. According to Mr. Sodergreen, the government release did not blame Mr. Sarao explicitly for the flash crash (the "Crash"). It merely stated that his actions "essentially tossed additional high octane fuel

The House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises (the "Subcommittee") held a hearing titled "Legislative Proposals to Enhance Capital Formation and Reduce Regulatory Burdens." Witnesses discussed 12 legislative proposals on capital formation for small businesses, including the "Small Business Investment Advisers Relief Act of 2015" (H.R. 432) and a bill to amend the CEA and the Securities Exchange Act to specify how clearing requirements apply to certain transactions between affiliates (H.R. 1317). North American Securities Administrators

The SEC announced that it will not recommend enforcement action under certain provisions of the Investment Company Act against various investment entities (the "Fund") that rely on an exemptive order for employees' securities companies (the "Order"). The Order states that the investment manager of the Fund may receive compensation for advising an underlying fund in which the Fund invests, but that the investment manager will waive any compensation that it receives as a result of the Fund's investment in the underlying fund. The investment manager does not intend to waive its fee due to (a)