The source of the SEC's authority to apply ATS regulations to government securities is not apparent. Very likely, such regulation would require action by the Treasury, which has authority over government securities broker-dealers pursuant to Section 15C of the Securities Exchange Act. (The "theory" of ATS regulation is that ATSs are "brokers" rather than "exchanges.")

In this political season, it is important to posit facts accurately and to stop demonizing those who hold legitimate though contrary views. The President's complaint that hedge funds are not regulated like banks is a good place to start. Banks take retail deposits; they benefit from FDIC insurance; they are not permitted to invest in equities; they are subject to minimum capital requirements to prevent their depositors from losing money; they are permitted to borrow from the…

FINRA recently extended the compliance date for the FINRA Debt Research Rule until April 22, 2016, and noted that it did so in response to industry questions regarding the implementation of the new rule. FINRA now has updated its Research FAQ to address at least some of the issues that could arise under the new Research Rules. Although the updated FAQ clarifies certain issues, others remain unclear. For example, the updated FAQ provides little additional guidance on what measures…

It is true that many rules have been adopted and that, if Dodd-Frank is implemented fully, even more will be adopted. It is far less clear that the financial system is better or more stable. Many of the new requirements are irrelevant to financial stability (e.g., the requirement that certain swaps be traded on an exchange), while the effect of other rules that are touted by the regulators as promoting financial stability (e.g., the requirement that certain swaps be centrally cleared) seem…