IOSCO just released their final report on Principles for the Regulation of Exchange Traded Funds. The report contains nine principles intended to guide the regulation of ETFs. The report states that it is a response to the sharp increase in interest worldwide in assets managed under ETF structures. Lofchie Comment: The opening pages of the report contain a nice summary of certain of the basic concepts around ETFs. The regulatory recommendations seem generally consistent with existing principles of U.S. securities regulations. See: IOSCO Final Report.

Commissioner Chilton focused on the regulation of "market cheetahs" (high-frequency traders) in his keynote address to the Trading Show Chicago 2013. Chilton highlighted HR 2292, the PROTECT Act, sponsored by Congressman Ed Markey, which would require registration, testing, kill switches, and increased penalties for violations of the CEA by high-frequency traders. Chilton also discussed what he views as several problems and potential solutions associated with high-frequency trading: The volume of trading done by cheetahs today; Potential problems associated with fantasy liquidity created by

The SEC's Office of Investor Education and Advocacy issued an Investor Alert concerning fraudulent investment offers made by firms "implying" that they have SEC "approval." See: SEC Investor Alert Here.

FINRA filed a proposed rule change with the SEC relating to members' filing obligations regarding Private Placements of Securities (Rule 5123); the rule change would require members to file documents on a FINRA electronic system. See: Text of proposed rule change.

FINRA is filing with the SEC a proposed rule change to amend: FINRA Rule 2360 (Options) to treat over-the-counter ("OTC") options cleared by the Options Clearing Corporation ("OCC") as conventional options for purposes of the rule; and FINRA Rule 4210 (Margin Requirements) to treat OTC options cleared by the OCC as listed options with respect to applicable margin requirements. As a general matter, this proposal would result in somewhat more favorable treatment of cleared OTC options for general regulatory purposes and for purposes of establishing margin requirements. See: Text of Proposed Rule