The SEC charged Boston-based dark pool operator eBX LLC with failing to protect the confidential trading information of its subscribers and failing to disclose to all subscribers that it allowed an outside firm to use their confidential trading information. The SEC order states that eBX operates the alternative trading system LeveL ATS, and failed to disclose in required SEC filings that it allowed LeveL subscribers' unexecuted order information to be shared outside of LeveL. Lofchie Comment: This disciplinary action raises some very serious questions as to the protection of customer trading

In this speech at the SEC Technology Roundtable, Chairman Schapiro states that the two basic concerns on which the SEC should be focusing are: market structure (e.g., multiple execution venues, the presence of high-frequency trading, and dark pools); and market infrastructure (i.e., the technology that undergirds trading activity). The roundtable focused more specifically on infrastructure. This was, according to Schapiro, not only because of infrastructure's importance, but also because of a "worry that this issue is at risk of being lost and subsumed by the broader debates regarding market

The CFTC has announced an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act, Federal Agencies are required to publish a notice in the Federal Register concerning each proposed collection of information, including each proposed extension of an existing collection of information, and to allow 60 days for public comment in response to the notice. This notice solicits comments on collections of information provided for by the Disclosure and Retention of Certain Information Related to Cleared Swaps, Customer Collateral

In this speech before the G-20 AMIS Roundtable on Public-Private Dialogue, Commissioner Chilton asserts that regulators are not moving fast enough, noting that regulators throughout the world "have not approved and or implemented financial reforms to ensure that there is some control over markets". Chilton suggests that the main, overarching goals of the Dodd-Frank Act are: (i) improved transparency, especially with OTC trading; (ii) lowering systemic risk with new capital and margin requirements; (iii) increased accountability; (iv) protecting market integrity. Chilton covers the following

Section 719(d) of the Dodd-Frank Act mandates that the SEC and CFTC jointly conduct a study to determine whether stable value contracts ("SVCs") fall within the definition of a "swap". Section 719(d) of the Dodd-Frank Act also requires that the Commissions, in making that determination, jointly consult with the DOL, the Treasury, and the State entities that regulate the issuers of SVCs. Further, Section 719(d) of the Dodd-Frank Act provides that if the Commissions determine that SVCs fall within the definition of a "swap," they jointly shall determine if an exemption for SVCs from the