The SEC published final rules and guidance regarding definitions for "Security-Based Swap Dealer" and "Major Security-Based Swap Participant." The rules and guidance apply to cross-border security-based swap ("SBS") activities and were published in the Federal Register. In addition to the final rules and interpretation, the SEC adopted procedural rules relating to the submission of applications for substituted compliance, as well as a final rule addressing the scope of its authority regarding enforcement proceedings under Dodd-Frank Section 929P ("Unlawful Margin Lending"). The new rules focus

The Asset Management Group of SIFMA ("SIFMA AMG") submitted a letter to CME Group regarding the potential negative impact of the recently issued Joint Audit Committee ("JAC") alert on SIFMA members, their clients and the asset management business as a whole. The JAC Regulatory Alert 14-03 was intended to serve as a reminder to futures commission merchants ("FCMs") of certain margin policies related to the receipt of margin deposits and the release of excess margin funds. SIFMA AMG requested that the JAC withdraw certain provisions of the alert that could impact negatively "beneficial owners"

The FINRA proposal to extend the implementation of FINRA Rule 4240 ("Margin Requirements for Credit Default Swaps") until July 17, 2015 was published in the Federal Register and is effective immediately. FINRA Rule 4240 implements an interim pilot program with respect to margin requirements for certain transactions in credit default swaps that are security-based swaps. In the absence of an extension, the rule would expire on July 17, 2014. While the rule was deemed noncontroversial by the SEC and is effective immediately, comments on the proposal may be submitted until July 30, 2014. See: 79

In response to routing patterns discovered through the FINRA Order Audit Trail System, the FINRA Trading Examinations Unit is conducting a review of the processes and procedures through which retail brokers route customer orders. FINRA posted an example on its Web site of the "sweep letter" it will send to brokers requesting that each firm provide information in connection with order routing and the execution quality of customer orders in exchange-listed stocks, including information as to: the firm's written supervisory procedures for FINRA Rule 5310 ("Best Execution and Interpositioning")

FINRA filed with the SEC a proposed amendment to FINRA Rule 9620 to permit FINRA staff to provide written decisions for exemptive relief under NASD Rule 1070 ("Qualification Examinations and Waiver of Requirements") for members electronically. See: Text of the Proposed Rule.