September 19, 2011

SEC to Host Roundtable About Microcap Securities

The SEC plans to hold a public roundtable to discuss microcap securities.  Microcap securities are low-priced stocks issued by companies with small capitalizations that trade primarily on the OTC Bulletin Board or OTC Quote (previously Pink Sheets).  The roundtable, to beheld on October 17, 2011 at the SEC’s Washington D.C.

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September 13, 2011

ICI President Weighs in on Proposed Adviser SRO and Related Issues

Paul Schott Stevens, the President and CEO of the Investment Company Institute (ICI), submitted a statement for the record in connection with the a hearing of a subcommittee of the U.S. House of Representatives Committee on Financial Services entitled “Ensuring Appropriate Regulatory Oversight of Broker-Dealers and Legislative Proposals to Improve Investment Adviser Oversight.”

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September 12, 2011

SEC Grants No-Action Relief that Relaxes Part of the Government Plan Recordkeeping Rule Applicable to Advisers

The SEC issued a no-action to the Investment Company Institute (ICI), the trade group for the investment company industry, that provides registered investment companies (“Covered Investment Pools”) with relief from certain pay-to-play recordkeeping rules.

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September 9, 2011

CFTC Continue to Struggle to Adopt Rules

CFTC Chairman Gary Gensler said in a meeting on September 8, 2011, that several major new rules for over-the-counter derivatives market will not be finalized until 2012, including rules on how much cash companies need to set aside to protect against losses on derivatives bets.

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September 7, 2011

SEC to Examine Connection Between ETFs and Market Volatility

U.S. securities regulators are looking into whether turbocharged exchange-traded funds (ETFs) amplified August's volatile swings in the stock market.

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September 7, 2011

SEC Chairman Issues Statement on Proxy Access Litigation

SEC Chairman Mary L. Schapiro confirmed that the SEC is not seeking rehearing of the decision by the U.S. Court of Appeals in Washington, D.C. vacating SEC Rule 14a-11, which would have required companies to include shareholders’ director nominees in company proxy materials in certain circumstances.  Nor will the SEC seek Supreme Court review.

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September 2, 2011

SEC Adopts Amendments to Form ID

SEC adopted a final rule to amend Form ID to include additional applicant types and corresponding definitions in order to improve the SEC’s internal procedures for processing filings, including by routing Form ID filings to the appropriate internal office or division.

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September 2, 2011

Swaps Rules Will Not Be Adopted 2012

The CFTC stated that a number of new rules that would regulate swaps will not be finalized until 2012.  The announcement was made in a speech by CFTC Chairman Gensler.  Congress in the Dodd-Frank Wall Street Reform and Consumer Protection Act had set the deadline for July 2011.

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September 1, 2011

iShares Files Exemptive Application for Nontransparent Active ETF

iShares Trust, which is sponsored by BlackRock, filed an Exemptive application with the SEC seeking to offer an actively managed ETF that would disclose its portfolio securities on a quarterly instead of daily basis.  The ETFs would rely on a blind trust to deliver portfolio securities when redeemed for the benefit of the redeeming authorized participants without disclosing the securities’ identities to the authorized participants.  The application argues that real-time pricing would let authorized participants hedge trading exposures in shares and permit the efficient trading of shares without the need for daily portfolio disclosure.  Creation units would be created by the deposit of cash and be redeemed by distributing portfolio securities to the blind trust.  The blind trust would liquidate the securities as instructed by authorized participants.

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September 1, 2011

FSB to Scrutinize Shadow Banking System

The Financial Stability Board (FSB) said that it will focus on money-market funds, securitizations and securities lending and repos more as it tackles the problem of regulating the so-called “shadow banking system.”   The FSB has a mandate from the Group of 20 leading industrialized and emerging economies to draft recommendations on reforming the financial sector worldwide to avoid a recurrence of the 2008 financial crisis.

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