CFTC Speeches March 7, 2011 CFTC Commissioner Jill Sommers called for: extended and more flexible time deadlines for implementing Dodd-Frank requirements; setting the precise scope of Dodd-Frank with respect to the cross-border activities of foreign banks; harmonizing our rules to the greatest extent possible with the SEC, other U.S. regulators and our foreign regulatory counterparts to ensure that we accomplish the overall objectives of "reducing systemic risk and limiting opportunities for regulatory arbitrage"; Commissioner Sommers also noted that the CFTC is out of step with non-U.S

FINRA Enforcement Action March 7, 2011 FINRA announced a $500,000 fine against a Texas-based broker-dealer for using paid consultants to solicit municipal securities business and for related violations of the MSRB rules. The action alleges that the broker-dealer paid consultants to promote the firm's ability to work as a financial advisor and municipal underwriter for public entities. In addition, the action alleges violations of MSRB rules relating to the firm's failure to report certain municipal transactions and for failing to have adequate systems and procedures to supervise aspects of its

SIFMA Amicus Brief, in 11-0235-cv (2d Cir.) March 1, 2011 SIFMA submitted an amicus brief to the Second Circuit Court of Appeals in a case regarding what the term "customer" means for purposes of the FINRA arbitration code. In the lower court proceeding, the Southern District of New York held that the issuer of securities was a "customer" of the underwriter/broker-dealer, and thus a dispute between the parties could proceed to arbitration. SIFMA argues that the case presented a "counterparty" relationship, and that as a "sophisticated part[y]," the issuer did not fit into the term "customer"

Financial Services Authority March 3, 2010 Welcome Financial Services Limited is insolvent and has proposed a scheme of arrangement to certain of its creditors as part of a restructuring proposal. In addition it is facing substantial potential liabilities arising out of alleged mis-selling of Payment Protection Insurance (" PPI") policies to its loan customers and it is unable or is likely to be unable to satisfy those liabilities. The firm has applied to vary its permission to carry on regulated activities (under Part IV of FSMA) and the FSA has granted the application. The firm's permission

SEC Release 34-64018 March 3, 2011 The SEC reopened the comment period on its proposed Regulation MC, which is designed to mitigate conflicts of interests at security-based swap clearing agencies and execution facilities, and at national securities exchanges that trade security-based swaps. The SEC stated that the reopening of the comment period is intended to allow firms' comments to reflect its proposed rule regarding the registration and regulation of security-based swap execution facilities and its proposal regarding registration of clearing agencies. Cross References SEC Release 34-63107