The SEC charged the City of South Miami, FL, with defrauding bond investors about the tax-exempt financing eligibility of a mixed-use retail and parking structure being built in its downtown commercial district. Lofchie Comment: This is at least the fourth enforcement action brought against governmental entities for misconduct in connection with securities offerings in a relatively short period. It's clearly past the trend stage. This news item links to the prior enforcement actions. See: Complaint. See also: Press Release.

The SEC charged the brother of a director, his friend, and his sister-in-law with insider trading in the securities of an East Lansing, MI-based holding company for a medical professional liability insurer. Without admitting or denying the allegations in the SEC's complaint, Stilwell, Moore, and Murphy consented to the entry of final judgments ordering them to pay disgorgement, prejudgment interest, and financial penalties, and permanently enjoining them from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. See: Complaint. See also: Press Release. See

The CFTC’s Division of Market Oversight ("DMO") issued an advisory regarding the ongoing duty to comply with the timely reporting requirements of CFTC Rule 17.04(a). The CFTC receives, pursuant to Part 17 of its regulations, daily reports on the reportable futures and options positions in all special accounts carried by futures commission merchants, clearing members and foreign brokers. The reports include information pertaining to omnibus accounts. Rule 17.04(a) requires a firm with an omnibus account to report information regarding that account to the futures commission merchant, clearing

According to witnesses who testified before the Monetary Policy and Trade Subcommittee, the Dodd-Frank "Conflict Minerals" provision has not reduced violence or served to end the war in the Democratic Republic of Congo. Dodd-Frank Section 1502 requires public companies to certify that their supply chains are free of any and all "conflict minerals" originating in the Congo. See: Press Release.

Chicago Federal Reserve Bank Senior Policy Advisor, John W. McPartland, authored a paper in which he discussed altering the financial markets in order to slow trading and allow market participants more chances to compete with some High-Frequency Trading ("HFT") strategies. According to the paper, although HFT may in general be a good thing, HFT strategies run counter to good public policy and inflate transaction costs with limited benefits for liquidity and pricing. McPartland argues that his proposals would help make security and derivatives markets fairer to mutual funds and individual