The IRS announced on March 4 that new withholding rules on equity-linked instruments under Section 871(m) of the Internal Revenue Code would be changed in final regulations so that such rules would only apply to equity-linked instruments issued on or after 90 days after the publication of final regulations. Under proposed regulations issued in December 2013, the IRS and Treasury proposed starting in 2016 to impose withholding tax of up to 30% on dividend equivalent payments made, or deemed made, to non-U.S. persons on "specified notional principal contracts" ( i.e., equity swaps) and specified

Despite the high potential cost of electronic trading disasters, why have broker-dealers, exchanges, and the national market system suffered from a string of highly-public catastrophic failures and near misses, and why do the tools of regulatory examinations and enforcement actions fail to tame such errors? The attached analysis from independent research and consulting firm System Logic, submitted as part of Steven Lofchie's testimony to the House of Representatives Committee on Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, argues that complex systems

Ron Wyden (D-ORE), Chairman of the Senate Committee on Finance, announced his leadership team. Mr. Wyden's team includes the following core individuals: Joshua Sheinkman, Staff Director Mr. Sheinkman comes from the Energy and Natural Resources Committee, where he held the same position Jocelyn Moore, Deputy Staff Director Ms. Moore comes from Senator Wyden's personal office, where she served as Deputy Chief of Staff and Policy Director Mike Evans, Chief Counsel Mr. Evans was previously a partner in the K&L Gates law firm David Berick, Chief Investigator Mr. Berick held the same position for

CFTC Commissioner Bart Chilton issued a statement criticizing the President's FY 2015 budget. Chilton stated that Dodd-Frank gave the CFTC a lot of new regulatory oversight, but did not and has not provided adequate funding. According to Chilton, the President's request of $280 million is $34 million less than the previous year's request and is "woefully insufficient for needed oversight and enforcement." He further stated that the CFTC has the mandate, but not the money, to properly oversee the futures and swap markets. Chilton went on to note that the FY 2015 level of funding would fund 100

The SEC announced that it is designating a longer period to take action regarding the FINRA amendments to Wash Sale Transactions and Rule 5210 ("Publication of Transactions and Quotations"). It is extending the period in which to consider the rule amendment until May 2, 2014. Lofchie Comment: Firms that are engaged in algorithmic trading activities that may be subject to the proposed rule should consider using the extended period to submit comments. See: Text of SEC Extension.