SIFMA submitted comments to the SEC regarding the SEC's proposal to extend the sunset date of Investment Advisers Act Rule 206(3)-3T to December 31, 2016. SIFMA explained that the rule has been in place for seven years, and that this was SIFMA's fifth comment letter on the rule, all of which were written in support of it. SIFMA stated that it "strongly supports" the proposal to extend the sunset date, and recommended a longer extension period of five years rather than two "to ensure the SEC has adequate time to consider broader rulemaking regarding the standard of conduct applicable to broker

IOSCO published a consultation report, titled "Risk Mitigation for Non-Centrally Cleared OTC Derivatives," which proposes standards across nine different areas aimed at mitigating the risks in the noncentrally cleared OTC derivatives markets. The areas for the proposed standards include: scope of coverage; trading relationship documentation; trade confirmation; valuation with counterparties; reconciliation; portfolio compression; dispute resolution; implementation; and cross-border transactions. The proposed standards were developed by IOSCO in consultations with the Basel Committee on Banking

The U.S. Government Accountability Office ("GAO") issued a report (the "Report") examining FSOC's efforts to address the recommendations from a GAO 2012 report to improve transparency, accountability, collaboration and coordination. The Report found that, while FSOC has undertaken efforts to improve in those areas, additional efforts are needed. The Report found that FSOC still lacks a comprehensive and systematic approach to identifying emerging threats to financial stability. Although FSOC developed two tools to address the GAO's concerns, one of them does not focus on risks to the financial

Senator Charles Schumer (D-NY) sent a letter to the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation urging the regulators to revise the recently finalized Liquidity Coverage Ratio ("LCR") rule to include certain municipal bonds within the definition of "High-Quality Liquid Assets" ("HQLA"). Senator Schumer states that the "blanket" exclusion of these bonds in the current LCR rule could create a disincentive for banks to hold investment grade securities and thereby increase borrowing costs for

The Financial Engineering Division at Stevens Institute of Technology published new research on the state of high-frequency trading ("HFT") and a proposed solution to mitigate key problems, the authors believe may be created by HFT, while "maintaining its benefits." The institute's white paper, titled "On the Impact and Future of HFT," addresses three major areas: HFT, as seen from various market agents' perspectives; the imminent problems and risks of HFT, including potential HFT systemic risk, as seen by various stakeholders; and possible solutions to existing issues of HFT, along with