SEC Release 34-64166; SR-FINRA-2010-035 April 1, 2011 The SEC published for comment a FINRA proposal to amend FINRA's Discovery Guide (including Document Production Lists) and to make conforming changes to Rules 12506 and 12508 of the Code of Arbitration Procedure for Customer Disputes. Cross References SEC Release 34-62584 (Proposal) FINRA Rules 12506, 12508

FINRA Regulatory Notice 11-15 April 4, 2011 FINRA published a regulatory notice providing guidance on considerations when dealing with low-priced equity securities in customer margin and firm proprietary accounts. FINRA is reminding firms in this notice to "consider the risks associated with low-priced equity securities" when extending credit on such securities. In particular, FINRA urges firms to look at (i) volatility, (ii) concentrated positions in a single customer account, (iii) concentrated positions across all customer accounts, and (iv) daily volume and market capitalization for each

SEC Release 33-9200 / 34-64182 April 5, 2011 The SEC announced a settled civil fraud action against a broker-dealer allegedly engaged in misconduct in the sales of two CDOs tied to the performance of residential mortgages. The release alleges that the firm charged "undisclosed excessive markups" in the sale of certain CDO shares. In addition, the release alleges that the firm misrepresented to investors the price it paid for certain mortgages obtained from an affiliate to form a CDO. The firm settled the charges, which include violations of Securities Act Section 17(a)(2)-(3) (but, notably

SEC Release No. 33-9199, 34-64149 March 30, 2011 The SEC proposed new rules to implement Exchange Act Section 10C (as added by Section 952 of Dodd-Frank). The new rules would direct national securities exchanges and associations to prohibit the listing of equity securities of issuers that are not in compliance with Section 10C's standards for compensation committees and compensation advisers. Comments on the proposal are due by April 29, 2011. Cross References SEC Press Release 2011-78 Exchange Act § 10C Dodd-Frank § 952 Statements of SEC Commissioners: Schapiro, Casey, Paredes, Aguilar

SEC Release 34-64167; SR-OCC-2011-03 April 1, 2011 The SEC published for comment a proposal of the Options Clearing Corporation to expand its internal cross-margining platform to permit affiliated clearing members to establish a cross-margining account in which securities and security futures cleared by OCC can be cross-margined with commodity futures and options on such futures cleared by OCC. Cross References Commodity Exchange Act Section 4d Exchange Act Section 17A