News Article In a Dec. 28 letter to the commission, three trade industry trade groups, FIA, ISDA, and SIFMa, warned the CFTC to tread lightly as it writes the regulations regarding trading practices that disrupt markets, manipulate prices or amount to fraud. The associations are particularly concerned with the commission's proposed definition of fraud. The CFTC, writing a proposed "antimanipulation" rule in November, said it wants to set "broad" criteria for judging traders. The commission likely will take aim at schemes that are intended to mislead investors or manipulate the market. The

www.isda.org Multiple trade associations sent a letter to respond to the letter submitted by the DOJ staff on December 28, 2010 to the CFTC regarding the Proposed Rules. The letter proposes that Dodd-Frank's mandatory clearing and execution requirements accentuate the importance of competition and innovation among and by DCOs, DCMs, and SEFs and that the views expressed by DOJ staff appear to represent a significant departure from the DOJ's experience and writings on this subject and ignore the DOJ's antitrust analysis of the structural restraints on competition that are endemic to a

European Securities and Markets Authority Following the establishment of the European Securities and Markets Authority (ESMA) on 1 January 2011, the Board of Supervisors (BoS) of ESMA held its first meeting on 11 January 2011. ESMA is an independent EU Authority and replaced the Committee of European Securities Regulators (CESR), an advisory body comprised of EU securities regulators that advised the European Commission from 2001 to 2010 on policy issues around securities legislation. Date January 11, 2011

FINRA News Release For the same conduct addressed in the SEC action discussed above, FINRA ordered Charles Schwab and Co. Inc. to pay $ 18 million dollars into a Fair Fund to be established by the SEC. FINRA's release stresses that Schwab failed to amend their marketing of the funds in response to changes in the fund's portfolio. Date January 11, 2011 Cross References (links may require a Cabinet subscription) FINRA Action No. 2008012876902 NASD Rules 2110, 2210, 3010(a)

SEC Release (FINRA Rulemaking) The SEC declared immediately effective a FINRA proposal to extend a pilot program that does not require TRACE reporting of transactions in TRACE-eligible securities executed on an NYSE facility and reported to the NYSE under NYSE rules. The pilot is extended through July 8, 2011. Date January 7, 2011 Cross References (links may require a Cabinet subscription) SEC Release 34-63673