SIFMA Asset Management Group ("SIFMA AMG") submitted comments to the CFTC requesting interpretive guidance with respect to the status of certain types of FX transactions as bona fide spot foreign exchange transactions. The CFTC further defined the term "swap," setting forth a distinction between FX spot transactions and FX forwards that included providing guidance as to "securities conversion transactions," which are entered into in connection with a related foreign securities transaction. Additionally, SIFMA AMG submitted comments to the CFTC requesting relief for certain External Business

According to an MFA blog post, 16 member states of the EU have not fully implemented the Alternative Investment Fund Managers Directive ("AIFMD"). Austria, Croatia, Cyprus, Denmark, Germany, Ireland, Latvia, Luxembourg, Malta, the Netherlands, Sweden, and the United Kingdom were the only EU Member States that had implemented the AIFMD by the July 22 deadline. The post reports that managers say they are still waiting on guidance from their local authorities. However, the European Securities and Markets Authority advised managers that AIFMD-compliant funds can be sold in any state regardless of

Former Congressional staffer Hester Peirce has published an article titled, "Regulatory Complicity in Nasdaq's Troubles." The article discusses last week's Nasdaq trading halt and examines how the SEC could approach the resolution of future problems in the securities market. Lofchie Comment: The article makes two important points: first, regulators feel pressured to bring a disciplinary action or make additional rule requirements whenever something profiled publicly goes wrong in the financial markets; second, it is often the case that the rule changes have negative unintended consequences

The CFTC settled charges against Velocity Futures, LLC for failing to comply with the minimum financial requirements for FCMs. According to the CFTC, Velocity failed to meet the minimum adjusted capital requirement because it did not properly account for certain events relating to two arbitration awards issued by the NFA. Velocity agreed to pay a $300,000 civil monetary penalty. See:CFTC Order; CFTC Press Release.

FINRA filed a proposed rule change to extend the pilot program in FINRA Rule 6730(e)(4) ("Transaction Reporting") to October 23, 2015. The pilot program exempts TRACE-Eligible Securities transactions that are executed on a facility of the NYSE from reporting to the Trade Reporting and Compliance Engine ("TRACE"). See: Text of Proposed Rule Change; FINRA Press Release. See also: FINRA Releases FAQ Regarding TRACE Reporting (August 1, 2013); FINRA Announces Increased Transparency in Mortgage-Backed Securities Market through TRACE (July 22, 2013); FINRA Proposed Rule Change: Dissemination of