FINRA filed with the SEC a proposed rule change to update the rules governing the Alternative Display Facility ("ADF") so that the existing rules reflect regulatory requirements that have been put into place since the last revision of the ADF rules. The proposed rule also conforms the ADF trade reporting rules to current FINRA rules relating to trade reporting to the FINRA Trade Reporting Facilities ("TRFs"). The SEC published a notice to solicit comments on the proposed FINRA rule change. See: SEC Notice of the Proposed Rule Change; FINRA Text of the Proposed Rule Change.

The Board of Governors of the Federal Reserve System ("FRB") issued a correction to the final rule that revises risk-based and leverage capital requirements for banking organizations published on October 11, 2013. The correction adds an acceleration clause under the capital components and eligibility criteria for regulatory capital instruments, and corrects an incorrect citation. The corrections are effective January 1, 2014. See: 78 FR 76973. Related news: OCC and FRB Publish Final Rules Regarding Regulatory Capital Rules (Fed. Reg.) (October 14, 2013); Financial Institution Letter: Proposed

The Board of Governors of the Federal Reserve System ("FRB") issued guidance on how certain risk transfer transactions affect assessments of capital adequacy at large financial institutions covered by the Federal Reserve's Consolidated Supervision Framework for Large Financial Institutions. According to the FRB, large financial institutions should carefully evaluate transactions intended to reduce risk to ensure that, if risks are shifted to a thinly capitalized counterparty or affiliated entity of the firm, any residual risk is effectively captured in the firm's internal capital adequacy

Mercatus Scholar and Associate Professor of Business and Economics at the University of Alaska Anchorage, Holly Bell, published an article discussing the recent efforts by the CFTC to control automated, high-frequency trading. According to Professor Bell, there are significant issues with the CFTC's proposed Concept Release on Risk Controls and System Safeguards for Automated Trading Environments. Professor Bell discussed the negative market effects that could result from the CFTC's attempt to impose a one-size-fits-all regulatory structure on high-speed trading technology, which she states

Three federal financial institution regulatory agencies including the Board of Governors of the Federal Reserve System ("FRB"), the Office of the Comptroller of the Currency ("OCC"), and the Federal Deposit Insurance Company ("FDIC") provided clarification and guidance to banking entities regarding investments in "Covered Funds" (as defined in the Volcker Rule), and how collateralized debt obligations backed by trust preferred securities ("TruPS CDOs") should be treated under the Volcker Rule. The FAQ addresses the following principal questions: (i) whether a TruPS CDO is a Covered Fund, (ii)