CFTC Commissioner Scott D. O'Malia made a speech discussing his observations on U.S. efforts to regulate derivatives markets. Commissioner O'Malia believes that the CFTC, in a rush to promulgate the rules, has lost sight of the statutory goals of Dodd-Frank and has disregarded the Congressional mandate to preserve end-users' business. O'Malia states that this has led to the CTC's adoption of rules that are unclear, inconsistent and harmful to U.S. businesses. Further, O'Malia argues that imposition of (what he believes are) unnecessary regulations on end-users will create more economic

The CFTC announced the filing and settlement of charges against Australia and New Zealand Banking Group Ltd. for exceeding speculative position limits in wheat and cotton futures contracts in trading on the Chicago Board of Trade and ICE Futures US. The CFTC ordered a $350,000 civil monetary penalty and cease and desist from further violations of the position limits provisions of the Commodity Exchange Act and CFTC regulations. Lofchie Comment: This is the third CFTC position limits enforcement action in the last several days; it's starting to feel like a trend. Clients interested in the

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

The SEC Division of Corporation Finance provided no-action relief to First Citizens Bancshares, Inc. pursuant to Exchange Act Rule 12h-3(b)(1)(i). The Division stated that it will not object in the case that First Citizens Bancshares, Inc. stops filing periodic and current reports under the Exchange Act under two circumstances. Cross-Reference(s): Exchange Act Rule 12h-3 (Suspension of Duty to File Reports Under Section 15(d)). View notice in full here (links externally to SEC website).

The SEC issued a staff report intended to help broker-dealers safeguard confidential information from insider trading and other forms of misuse. The report -- issued by their Office of Compliance Inspections and Examinations (OCIE) -- describes strengths and weaknesses identified in examinations into how broker-dealers keep material nonpublic information from being misused. Lofchie Comment: All firms that receive inside information must review this report carefully. It contains a very full discussion of the various ways that broker-dealers may receive inside information and the steps that they