SEC Litigation Release The SEC announced the filing of a civil action against a firm for its alleged dumping into the market shares of penny stocks which it acquired from issuers at deep discounts under the pretense of a long-term investment. The SEC complaint alleges that the practice amounted to public stock distributions in violation of section 5 of the Securities Act. Document Number SEC LR-21798 Date January 6, 2011 Cross References (links may require a Cabinet subscription) SEC PR 2011-1 SEC Complaint Securities Act § 5

NFA - Notices to Members I-11-01 NFA is providing the guidance based upon a letter from the CFTC's Division of Clearing and Intermediary Oversight to assist members in complying with the requirements as they relate to the disclosure of conflicts of interests arising from the collection of incentive fees by CPOs and CTAs Date January 5, 2011 Cross References (links require a Cabinet subscription) CFTC Rules 4.24(j) and 4.34(j)

News Article Bart Chilton, the outspoken CFTC commissioner, said Tuesday he is reluctant to support the CFTC's issuance of a proposal on position limits because what has been suggested so far has not met the congressionally mandated implementation schedule. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFTC was supposed to have a final rule by mid-January on what kind of limits traders would have in the agricultural, energy and metals markets. Last month the CFTC said it would miss that target. On December 16, the CFTC introduced its plan to curb speculation in

News Article CFTC Commissioner Bart Chilton said he would move forward with an interim plan for imposing position limits that would establish a "points" system to track trading positions in goods like oil and metals, but would hold off on strict position limits while the five-member body considers new rules for those markets. Previously, Mr. Chilton has advocated establishing limits on those traders immediately in order to curb "excessive speculation." The "points" system Mr. Chilton is supporting would give the CFTC monthly reports that it could use to red-flag traders with large positions

News Article A top official at the U.S. futures regulator said on Tuesday he was now in favor of a stalled position limit plan, a key turnaround that would allow the controversial rules to advance to the public comment stage. Under the plan, the CFTC staff would implement a "position points" system proposed by Commissioner Bart Chilton until CFTC puts its position limit plan in place. Under this system, if traders' holdings in a commodity reaches a certain threshold, it triggers heightened regulatory scrutiny by the CFTC where commissioners could vote to require the traders to reduce their