New rules and rule proposals from BYX, NYSE Arca, and the OCC: BYX: Proposed Rule - Change to Adopt a Retail Price Improvement Program NYSE Arca: Effective Immediately - Change Relating to the First Trust CBOE S&P 500 VIX Tail Hedge Fund OCC: Final Rule - Change Relating to the Auction Process under Options Clearing Corporation Rule 1104

FIA and ISDA announced the publication of the FIA-ISDA Cleared Derivatives Addendum, a template that can be used by U.S. FCMs and their customers to document their relationship with respect to OTC swaps. The Addendum includes representations for each party to make regarding certain clearing-related matters, such as the treatment of customer collateral. It also sets forth the close-out methodology for cleared OTC swaps, the triggers for liquidation and provisions for valuing the terminated trades. Lofchie Comment: Any client seeking information as to the specific provisions of the Addendum, and

Cadwalader Client Friends Memo. On July 17, 2012, the Consumer Financial Protection Bureau ("CFPB") reached a groundbreaking $165 million settlement with a credit card issuer in its first enforcement action, ordering Capital One Bank (USA), N.A. to refund $140 million to two million customers who had purchased its credit card "add-on" products, and to pay a $25 million fine into the CFPB's Civil Penalty Fund. The CFPB is a powerful regulatory agency that was created by the Dodd-Frank Act to implement and enforce federal consumer financial laws and to promote fair, transparent, competitive and

In response to SEC Chairman Mary Schapiro's proposal to restructure money market funds, Commissioner Daniel M. Gallagher and Troy A. Paredes submitted a joint statement on the reasons for their disagreement with the Chairman's proposal. Specifically, they asserted that the proposals were not supported by sufficient data, would be expensive to the economy and would create risk in the economy. The Commissioners recommended that the SEC staff conduct more detailed research and analysis on money market funds before the SEC proposed rules. This statement follows Commissioner Aguilar's statement

NFA submitted a proposed rule change to the CFTC regarding the proposed amendments to the Interpretive Notice to NFA Compliance Rule 2-9: FCM and IB anti-money laundering program. The compliance rule applies to notice-registered broker-dealer and IB transactions in securities futures products. The NFA made the following rule clarifications: (i) for omnibus accounts opened by an intermediary, AML is of the intermediary but not of the underlying holders; (ii) for the account of a pool, AML is of the pool but not of investors in the pool; and (iii) in a give-up arrangement, it's the clearing