The Asset Management Group of SIFMA ("SIFMA AMG") submitted comments on the European Commission's ("EC") consultation document regarding foreign exchange ("FX") financial instruments, which considers where the boundary lies between what is and is not an FX financial instrument. SIFMA AMG focused its letter on questions that address the scope of the FX spot test in light of its members' use of FX markets, as well as SIFMA AMG's interaction with other global regulators on the topic. The letter argues that FX spots are unique instruments that are distinct from derivatives. It urges the EC to

The SEC issued an investor alert warning of the potential for fraud in microcap companies whose operations relate to the marijuana industry. The alert follows the SEC's fifth suspension in the past two months of a company claiming to be involved in the marijuana industry for which concerns were raised about the accuracy of the company's assets, revenues and other financials. The investor alert states that fraudsters often exploit the latest growth industry to lure investors with the promise of "high returns." According to Elisha Frank, SEC Co-Chair of the Enforcement Division's Microcap Fraud

FINRA issued a regulatory notice to provide additional information on how trades in certain securities that have both debt- and equity-like features, or "hybrid" securities, must be reported. Specifically, the SEC approved an interpretation regarding the appropriate trade reporting facility to which firms should report transactions in the following three types of hybrid securities: unlisted depositary shares having a liquidation preference of $1,000 or more; unlisted non-convertible, preferred securities having a liquidation preference of $1,000 or more; and unlisted capital trust securities

In a speech before the New England Council, Comptroller of the Currency Thomas J. Curry discussed cybersecurity, recent efforts to combat cyberattacks, and risks stemming from relationships between banks and their third-party service providers. Echoing remarks made last month before a meeting of CES (Consumer Electronics Show) Government, Comptroller Curry mentioned three specific risks related to third-party cybersecurity: (i) the extent to which service providers are consolidating and leaving financial institutions more dependent upon a single vendor, (ii) the increased reliance by banks on

SEC Commissioner Gallagher issued a comment letter criticizing the authority of the Financial Stability Oversight Council ("FSOC") to designate nonbank entities as systemically important financial institutions ("SIFIs"). Commissioner Gallagher stated that although the SEC does not have a formal role in "FSOC's misguided debate" over whether or not to designate asset managers as SIFIs, he called on regulators and market participants to engage in an "honest debate" regarding FSOC initiatives. Commissioner Gallagher criticized the recent OFR Asset Management and Financial Stability Report, which