Delta Strategy Group released a very useful summary of the finalized "Made Available to Trade Rule." As previously explained, this is the process by which a swap execution facility ("SEF") may require that any swap that is subject to mandatory clearing also be traded only on a regulated market. Click here to see a summary of the "made available to trade" rule and process from Delta Strategy Group.

The SEC and FINRA issued a warning to investors regarding a sharp increase in e-mail linked to "pump-and-dump" stock schemes designed to trick unsuspecting investors. Pump-and-dump promoters frequently claim to have "inside" information about an impending development, but once the stock price is "pumped" up by the buying frenzy they create through mass e-mail pushes, they "dump" their shares by selling them, and investors are left with a near worthless stock. Investors should always be wary of unsolicited investment offers in the form of an e-mail from a stranger. See: Investor Alert; Press

The SEC filed a civil injunctive action alleging that two brothers engaged in insider trading. Lofchie Comment: I suppose it is not really surprising, but a lot of the insider trading cases involve family members, sometimes improperly sharing information, sometimes effectively "stealing" information from one another. See: Complaint; Press Release.

The Chicago Board Options Exchange ("CBOE") agreed to pay $6 million in the settlement of an SEC enforcement action. In its press release relating to the settlement, the SEC stated that this was the first time the SEC had assessed a financial penalty against an exchange for violations related to the exchange's regulatory oversight, and characterized previous monetary penalties against exchanges as relating to "misconduct on the business side of their operations." While the SEC's action against CBOE included a number of regulatory and compliance failures, the most serious charge against CBOE

FINRA released a podcast on June 10, 2013, focusing on how its consolidated Communications with the Public rule applies to social media and personal electronic devices. The podcast discussed that, while social media extends the ability to communicate, both FINRA and SEC rules require that firms must be able to retain records of those communications. Firms should also consider prohibiting sensitive electronic communications unless a registered principal has previously approved the content. Similarly, firms should be cautious about third-party posts. This rule also applies to personal electronic