The significance of these rule changes, assuming that they are all eventually approved, is that it brings back the "basis trade," netting securities risk against offsetting futures risk to reduce margin requirements. Of course, the ultimate level of margin is not yet known. In addition, the clearing houses may require customers to hold a minimum level of margin with them at all times, regardless of the level of risk. That will cause customers to narrow the number of firms through which they…

These enforcement actions raise practical, legal and policy questions.

Practical. Firms must consider whether they are vulnerable to the same type of enforcement action that was brought by the State of Texas. They must also consider whether it is worthwhile to provide execution services to small clients executing low-dollar transactions.

Legal. The enforcement actions treat a 5% commission as an effective cap. It is not obvious that this should be good law. After all,…

Taken on its words, the rule change is non-controversial and is a recitation of existing law. But query whether the rule change in anticipation of the SEC doing away with the Trade-Through Rule? See .

The CFPB's move to regulate EWA as "credit" in the name of protecting borrowers, more likely had the effect of making it more difficult for workers to get access to needed funds.