The SEC held an open meeting to consider a recommendation to propose amendments to the Investment Company Act's requirements applicable to money market funds. Chairman White delivered opening remarks at the meeting, focusing on the necessity of making money market funds less susceptible to runs. Chairman White noted that, while money market funds have long served as an important investment vehicle for corporations, banks, and governments, the financial crisis of 2008 highlighted the susceptibility of these products to runs. To stop these runs, the SEC adopted a series of reforms in 2010 that

The Financial Regulatory Authority ("FINRA") fined two firms $2.15 million and ordered them to pay in restitution to customers for losses incurred from unsuitable sales of floating-rate bank loan funds. FINRA found that the firms' sales representatives recommended concentrated purchases of floating-rate bank loan funds to customers whose risk tolerance, investment objectives, and financial conditions were inconsistent with the risks and features of these funds. For example, in instances where customers were seeking to preserve principal, or had conservative risk tolerances, sales persons

The CFTC met with LCH.Clearnet on DCO Core Principles. See: Press Release.

The CFTC Division of Clearing and Risk ("DCR") announced the issuance of an extension of time for compliance in order to provide additional time for market participants to coordinate on the communication of limits for bunched orders for futures. The extension applies to the obligation of futures commission merchants ("FCMs") clearing allocated futures trades to establish risk-based limits for each customer and enter into an agreement with the account manager requiring the account manager to screen orders for compliance with those limits. This extension of time is intended to provide sufficient

The CFTC Division of Clearing and Risk issued no-action relief providing eligible treasury affiliates that enter into swaps which are subject to the clearing requirement in Section 2(h)(1) of the Commodity Exchange Act and Part 50 of the CFTC rules with relief from the clearing requirement, subject to certain conditions and requirements. Most significantly, the treasury affiliate must be intermediating the swap for another affiliate that would have been eligible to use the exemption from the clearing exemption had it not interposed an affiliate in dealing with the "street." Lofchie Comment