The SEC imposed a $275,000 fine and a cease and desist order on a firm that had been out of business for over three years.

Given that the exchange had long ago stopped operating, and that no charges were brought against individuals, there was no reason for the defendants to contest the SEC's charges. Essentially, the defendants paid the SEC money so that the regulator would go away.

The dissenting Commissioners suggested that the entire enforcement action seemed half hearted,…

Valued Clients and Readers,

I am so happy to share with you the news that my colleague, Mark Highman, and I have joined Norton Rose Fulbright.

We are excited to join a law firm that can provide clients with deep legal and strategic counsel across a broad range of legal areas, and in more than fifty jurisdictions - virtually every significant jurisdiction in the world. There may not be any area of law so inherently multi-jurisdictional as financial regulation. Our move to Norton…

The continuing decrease in the number of firms providing clearing services may be a point of concern in light of the SEC's recently adopted mandate for the clearing of certain repos and cash trades in U.S. government securities. It seems likely that the number of firms willing to provide clearing services in repos may be less than the number of firms willing to enter bilateral transactions in repos.  

It is not obvious that any legislation can force regulators to be more open to innovation. That seems more a matter of culture than of statute.