Whether they involve swaps or equities, the number of trade reporting violations that result from technology issues is substantial. When reporting technology goes wrong, trade reporting violations can multiply quickly until they reach a fantastic amount (followed by commensurate regulatory fines). Accordingly, it makes sense for firms to institute regular auditing processes in order to confirm that trade reporting is working as expected.

This is the second significant enforcement action that the SEC has brought against a firm for illegally entering into or arranging security-based swaps with retail investors. (See also .) The second action is as troubling as the first, but not because the charged party might have been undeserving of sanction. It is troubling because the violation was not primarily the act of selling swaps to unsophisticated investors. In the previous case, the real crime was that the swaps company had…

This is one of several insider trading enforcement actions brought recently against IT personnel (see, e.g., ). Accordingly, issuers of all types – not just financial firms – need to give consideration as to how to best limit access to confidential information by IT personnel.

As he has , Mr. Dudley has been consistent in expressing this view of regulatory developments. Suffice to say that others have expressed different views on many of these regulatory developments. For example, some have argued quite convincingly that the move to central clearing creates as many risks as it resolves (and that the new risks are more serious). See, e.g., ; see also .