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SEC Proposes New Rule to Prevent Fraud in Connection with Security-Based Swaps
November 3, 2010--The Securities and Exchange Commission today voted unanimously to propose a new rule to help prevent fraud, manipulation, and deception in connection with security-based swaps.
The rule is proposed under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which generally authorizes the SEC to regulate security-based swaps. The proposal would ensure that market conduct in connection with the offer, purchase or sale of any security-based swap is subject to the same general anti-fraud provisions that apply to all securities. And it also would explicitly reach misconduct in connection with ongoing payments and deliveries under a security-based swap.
“The proposed rule would be an important means to ensure that the security-based swap market operates with integrity, and that the SEC has the ability to respond through enforcement to a range of potentially fraudulent conduct,” said SEC Chairman Mary L. Schapiro.
view Prohibition Against Fraud, Manipulation, and Deception in Connection with Security-Based Swaps rule proposal
Source: SEC.gov
SEC Publishes Request for Comment on President's Working Group Report on Money Market Fund Reform Options
November 3, 2010--The Securities and Exchange Commission today published a request for public comment on the options discussed in the President's Working Group on Financial Markets report on possible money market fund reforms.
As contemplated by the President's Working Group report, the SEC is requesting public comment on the options described in the report, including the effectiveness of the options in mitigating any systemic risk or susceptibility to runs associated with money market funds, as well as their potential impact on money market fund investors, fund managers, issuers of short-term debt, and other stakeholders. Comment received will assist the SEC and the Financial Stability Oversight Council in their further analysis.
The public comment period will remain open for 60 days following publication of the comment request in the Federal Register.
view Request for Comment and PWG Report on Money Market Fund Reform
Source: SEC.gov
SEC Adopts New Rule Preventing Unfiltered Market Access
November 3, 2010-- The Securities and Exchange Commission today voted unanimously to adopt a new rule to require brokers and dealers to have risk controls in place before providing their customers with access to the market.
The new rule focuses on a practice in which broker-dealers hand their customer a special pass to access the markets called a market participant identifier. The customer then gains direct access to the applicable exchange or alternative trading system (ATS), also known as “sponsored access.”
The rule approved today prohibits broker-dealers from providing customers with “unfiltered” or “naked” access to an exchange or ATS. It also requires brokers with market access — including those who sponsor customers’ access to an exchange or ATS — to put in place risk management controls and supervisory procedures to help prevent erroneous orders, ensure compliance with regulatory requirements, and enforce pre-set credit or capital thresholds.
“I have previously likened unfiltered access to giving your car keys to a friend who doesn't have a license and letting him drive unaccompanied,” said SEC Chairman Mary L. Schapiro. “This rule requires that broker-dealers not only remain in the car, but also maintain control of it so we can all be assured the rules of the road will be observed before the car is ever put into drive.”
Through sponsored access —especially “unfiltered” or “naked” sponsored access arrangements — there is the potential that financial, regulatory and other risks associated with the placement of orders are not being appropriately managed. Of particular concern is the quality of broker-dealer risk controls in “unfiltered” access arrangements. In some cases, the broker may be relying on assurances from its customer that the customer has appropriate risk controls in place.
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Source: SEC.gov
FactorShares files with the SEC-FactorShares 2X: Gold Bull/S&P500 Bear
November 3, 2010---FactorShares have filed a pre-effective amendment No. 3 to Form S-1 for FactorShares 2X: Gold Bull/S&P500 Bear.
view filing
Source: SEC.gov
FactorShares files with the SEC-FactorShares 2X: Oil Bull/S&P500 Bear
November 3, 2010--FactorShares have filed a pre-effective amendment No. 3 to Form S-1 for FactorShares 2X: Oil Bull/S&P500 Bear.
view filing
Source: SEC.gov
FactorShares files with the SEC -FactorShares 2X: S&P500 Bull/TBond Bear
November 3, 2010--FactorShares have filed a pre-effective amendment No. 3 to Form S-1 for FactorShares 2X: S&P500 Bull/TBond Bear.
view filing
Source: SEC.gov
FactorShares files with the SEC
November 3, 2010--FactorShares have filed a pre-effective amendment No. 3 to Form S-1 for FactorShares 2X: TBond Bull/S&P500 Bear.
view filing
Source: SEC. gov
FactorShares files with the SEC
November 3, 2010--FactorShares has filed a pre-effective amendment No. 3 to Form S-1 for
FactorShares 2X: S&P500 Bull/TBond Bear.
view filing
Source: SEC.gov
Northern Trust files with the SEC
November 3, 2010--Northern Trust Investments has filed an amended and restarted application for exemptive relief with the SEC for the NT ETF Trust.
view filing
Source: SEC.gov
Remarks before FIA Futures and Options Expo, Chicago, IL-Chairman Gary Gensler
November 3, 2010-Good morning. I thank the Futures Industry Association for inviting me to speak today, and I thank John Damgard for that very kind introduction. Since I last spoke before the FIA, Congress passed historic reform to bring comprehensive oversight to the swaps marketplace.
Before I discuss the details of reform, I'd like to thank my fellow Commissioners and CFTC staff for all of their hard work on the Dodd-Frank Wall Street Reform and Consumer Protection Act and on its implementation. I’d also like to recognize my fellow Commissioners in the audience: Mike Dunn, Jill Sommers and Bart Chilton.
In bringing oversight to the swaps market, Congress built upon strengths from the futures marketplace. Futures and swaps are both derivatives. It is only natural that Congress would treat them similarly and apply similar protections to both markets.
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Source: CFTC.gov
