News Article Commodity traders in the European Union may face restrictions including position limits under proposals from the European Commission aimed at curbing excessive price volatility. "We need regulators to keep a closer eye on positions taken up in respect of commodity derivatives," Michel Barnier, the EU's financial services chief told reporters in Brussels today. "This will include the possibility of introducing position limits if necessary," he said. "Personally speaking I believe in this." Publication Bloomberg Date Feb. 2, 2011 Cross References Dodd-Frank Act, Title VII, Sec. 737

SEC Release 34-63825 Date February 2, 2011 The SEC proposed Regulation SB SEF under the Exchange Act to define "security-based swap execution facilities" (SB SEFs) and to establish registration requirements, duties, and core principals applicable to those entities. In addition, the proposal would amend Rule 3a-1 under the Exchange Act to exempt a registered SEF from the definition of "exchange" and would add Rule 15a-12 to exempt registered SEFs from regulation as a broker under § 15(b). Steven Lofchie; steven.lofchie@cwt.com Jeffrey Robins; jeffrey.robins@cwt.com Cross References SEC Press

News Article The SEC laid out a series of proposals for new swap trading venues Wednesday, including one that was markedly different from one put forward by the CFTC. In an open meeting Wednesday, the SEC, which has jurisdiction over security-based swaps, said it wanted to ensure customers trading on a SEF are able to request a quote from a single dealer, rather than multiple dealers. CFTC rule proposals would require swap users to receive prices from no fewer than five dealers at a time. The move is likely to quell some concerns among OTC market participants, who are still weighing the impact

SEC Press Release 2011-38 Date February 3, 2011 The SEC announced the filing of civil insider trading charges against six expert network consultants and employees alleged to have illegally tipped hedge funds. The complaint alleges that four consultants at an expert network firm illegally tipped information to hedge funds and other clients of the expert network. In addition, the complaint charges two employees of the expert network for acting as "conduits" by receiving inside information and relaying it to clients. Please contact any of the following Cadwalader attorneys if you have any

News Article The SEC proposed rules for trading swaps on "swap execution facilities", or SEFs, that differ from those being considered by the CFTC. Under its proposal, a potential buyer or seller of a swap could seek a price from all participants, or choose to send it to fewer. In effect, the SEC rule means that SEFs for single name CDS could adhere to the current market practice of an RFQ being sent to a single dealer. Under proposed CFTC rules for SEFs covering interest rate swaps and credit indices, a RFQ must be sent to at least five dealers. Publication Financial Times Date February 3