The SEC announced that the United States District Court for the Southern District of New York has entered a final judgment approving a $1.8 million settlement between the SEC and hedge fund manager Douglas F. Whitman and his firm Whitman Capital. The case arose from the SEC's investigation of insider trading perpetrated by Raj Rajaratnam. See: SEC Litigation Release. Related News: "SEC Obtains Final Judgment on Consent as to Raj Rajaratnam" (December 27, 2012).

The CFTC's Division of Clearing and Risk issued a no-action letter that provides relief from required clearing for a limited set of swaps ("stub swaps") that remain after the partial novation or partial termination of an original swap that was not required to be cleared because it was executed prior to an applicable compliance date for required clearing. The no-action relief is subject to, among others, the following conditions: the original swap must not have been cleared; the original swap was executed prior to an applicable compliance date for required clearing; the partial novation or

The SEC announced that the New York-based hedge fund advisory firm, Sigma Capital Management, has agreed to pay nearly $14 million to settle charges that the firm engaged in insider trading. The charges are based on the use of material nonpublic information obtained through one of its analysts, who agreed to a settlement earlier this month in which he admitted liability. See: SEC Complaint and Litigation Release.

The NFA, the futures industry SRO, and Better Markets, Inc., "a non-profit organization," have filed a joint amicus curiae brief in the Investment Company Institute v. CFTC matter. The brief urges the U.S. Court of Appeals for the D.C. Circuit to uphold the CFTC's amendments toRule 4.5. The CFTC rule amendments at issue seek to re-impose de minimis trading and no-marketing restrictions upon SEC-registered investment companies ("RICs") seeking to trade in futures and swaps without becoming "commodity pools" regulated by the CFTC (in addition to their regulation by the SEC). The brief seeks to

The MFA released the latest edition of its monthly newsletter, MFA Policy Brief. The following items of regulatory interest are included: The MFA's comment letter to the SEC on proposed capital, margin and segregation rules. An update on developments surrounding financial transaction tax proposals in the European Union and the U.S. An MFA piece regarding key provisions in the Jumpstart Our Business Startups ("JOBS") Act designed to remove the general solicitation ban covering private offerings. MFA President and CEO Richard H. Baker's comments on Foreign Account Tax Compliance Act ("FATCA")