The Managed Futures Association ("MFA") submitted a comment letter to the CFTC in response to the "made available to trade" ("MAT") submissions of Javelin SEF, LLC; trueEX, LLC; and TW SEF LLC for certain interest rate swap products. The MFA letter proposed that the CFTC phase in the trade execution requirement on registered swap execution facilities ("SEFs") and designated contract markets ("DCMs") by product and transaction type for the rates asset class, beginning with outright, spot-starting, USD and EUR swaps at the benchmark tenors in the fixed-to-floating interest rate swap class. This

FINRA filed a proposed rule with the SEC regarding amending Form BR. The proposed rule change would make the following amendments: eliminate Section 6 (NYSE Branch Information); add questions relating to space-sharing arrangements and the locations of books and records; modify existing questions and instructions in order to provide more detailed selections for describing the types of activities conducted at the branch office; and add an optional question to identify if an office is an "Office of Municipal Supervisory Jurisdiction." See: Text of Proposed Rule Change; FINRA Press Release.

CFTC issued an order filing and settling charges against SHK Management, LLC ("SHK"), and its principal, Daniel Shak, for attempting to manipulate the price of Light Sweet Crude Oil ("WTI") futures contracts on the NYSE, and violating the intraday spot month speculative position limits applicable to WTI futures contracts on two days in 2008. According to the CFTC order, on each of the two trading days in 2008, SHK and Shak established substantial short positions in WTI futures contracts through Trading at Settlement ("TAS"). SHK and Shak then intentionally traded a significant volume of

On May 19, 2010, the SEC conditionally exempted, with respect to certain credit ratings and until December 2, 2010, nationally recognized statistical rating organizations ("NRSROs") from certain requirements in Exchange Act Rule 17g-5(a)(3) ("Conflicts of Interest"). Pursuant to the Order, an NRSRO is not required to comply with Rule 17g-5(a)(3) until December 2, 2010 with respect to credit ratings where: the issuer of the structured finance product is a non-U.S. person; and the NRSRO has a reasonable basis to conclude that the structured finance product will be offered and sold upon issuance

The House Financial Services Committee held a meeting entitled "A Legislative Proposal to Amend the Securities Investor Protection Act" to discuss legislation intended to reaffirm the Securities Investor Protection Corporation's ("SIPC") retail investor objectives by amending provisions of the Securities Investor Protection Act of 1970 ("SIPA"). The bill would, among other things, change the manner in which a customer's net equity is calculated and allow for a trustee to favor retail customers over institutional customers in the bankruptcy of a broker-dealer. Lofchie Comment: The attached