FINRA Regulatory Notice FINRA issued a regulatory notice to announce that OATS order recording and reporting obligations in FINRA Rules 7410 through 7470 will, effective July 11, 2011, be applicable to all orders in NMS stocks, in addition to OTC equities. The release further announces that an updated edition of the OATS Reporting Technical Specifications will become effective on July 11. Date January 11, 2011 Cross References (links may require a Cabinet subscription) FINRA RN 11-03

Department for Business, Innovation and Skills On 7 January 2011, the Department for Business Innovation Skills ("BIS") published a proposed set of principles for economic regulation which seek to reaffirm the importance of stable frameworks for economic regulation. The proposed principles are: i) accountability, ii) predictability, iii) coherence, iv) adaptability, v) efficiency and vi) focus. Although abstract, the principles are intended to facilitate efficient investment and sustainable growth, and provide greater clarity about roles of governments and regulators. BIS has requested

www.isda.org ISDA announced on Monday that Gay Huey Evans will join ISDA as a Vice Chairman of the Board of Directors and Non-Executive Chairman of Europe for ISDA, effective January 10, 2011. She will act as an advisor to ISDA's Board and management with respect to public policy issues in Europe. She will also work alongside ISDA's executive management in refining the Association's strategic plans in the new regulatory environment. Date January 10, 2011 Cross References (links may require a Cabinet subscription) N/A

Litigation Release The SEC today charged Charles Schwab Investment Management and Charles Schwab & Co., Inc. with making misleading statements regarding the Schwab YieldPlus Fund and failing to establish, maintain and enforce policies and procedures to prevent the misuse of material, nonpublic information, alleging and, in its related order, finding that each entity willfully violated anti-fraud provisions of the 33 Act, Sections 17(a)(2) and (3). Document Number Litigation Release No. 21806 Date January 11, 2011 Cross References (links may require a Cabinet subscription) Sections 17(a)(2) and

SEC Press Release The SEC announced a settled enforcement action against two Charles Schwab entities and their employees for making material misstatements in marketing a "YieldPlus" fund as a "cash alternative" despite the presence of significant market risk in the securities the funds invested in. The SEC actions allege violations of a number of provisions of the securities laws, including anti-fraud charges under the Securities Act against the Schwab entities, and 10b-5 charges against the individuals. The Schwab entities paid over $110 million to settle the actions. Please contact any of