The Commodity Futures Trading Commission (CFTC) is constructing a new plan to address the unmanageable flood of poor quality trading data that hamstrings its ability to properly monitor market risk. The Commission will release a draft of its plan next week, which seeks to improve the quality of this data, said Commissioner Scott O’Malia on Thursday.
Delaware Court of Chancery Finds Financial Advisor Liable for Aiding and Abetting Fiduciary Duty Breaches
On March 7, 2014, Vice Chancellor Travis Laster of the Delaware Court of Chancery found a financial advisor liable for aiding and abetting breaches of fiduciary duties by the board of Rural/Metro Corporation in connection with the company’s 2011 sale to an affiliate of Warburg Pincus LLC.
Full-Time SEC Enforcers, Part-Time Insider Traders?
The U.S. Securities and Exchange Commission (SEC) brings hundreds of civil enforcement actions against violators of federal securities laws every year. One of the most common actions is for insider trading; the SEC brought 58 of them in FY 2012 alone, and more in the last three years than in any three-year period ever.
Malaysia Considers New Retirement Fund Structure
Reuters Arabic Service is reporting that the Malaysian government’s retirement fund, the sixth largest in the world controlling assets exceeding $160 billion, is considering establishing an independent fund to concentrate on investments in Islamic finance.
Credit Derivatives, Re-Defined
The International Swaps and Derivatives Association, Inc. (“ISDA”) will be updating its 2003 international credit derivatives definitions this September. Though the final definitions of this year’s update have yet to be published, some details have already emerged. For example, there will be a new credit event that would occur as a result of a governmental debt write-offs of a financial reference entity. The update will also include basic, commonly used terms associated with credit derivatives transactions.
U.S. vs. Swiss Banks: Battle Against Tax Evasion
U.S. Chapter 15: a Tool for Implementing Foreign Reorganization Plans in the United States – the Elpida Experience
The Chapter 15 case of Elpida, which was filed in the U.S. in connection with Elpida’s debtor-in-possession proceeding pending in Tokyo, Japan under the Japanese Corporate Reorganization Act (the “JCRA”), has attracted broad attention in Japan and elsewhere. Although not sought in most Chapter 15 cases, and successfully obtained in even fewer cases, U.S. recognition of a foreign plan of reorganization is an important tool available to a Chapter 15 debtor, as such recognition implements the foreign plan in the U.S. and prevents U.S. actions that are inconsistent with the foreign plan.
MSRB Proposes New Conduct Rule for Non-Solicitor Municipal Advisors and Amendments to Books and Records Rules for Municipal Advisors
On January 9, 2014, the Municipal Securities Rulemaking Board (“MSRB”) published a request for comments on a proposed new conduct rule for non-solicitor municipal advisors and amendments to existing books and records rules to include municipal advisors in Regulatory Notice 2014-01 (the “Rule Notice”).
FCC Hard at Work on a Plan to Restore Net Neutrality Rules, Draws Skepticism and Fear
Earlier this year, the DC Circuit in Verizon v. FCC struck down anti-discrimination and anti-blocking policies of the FCC and allowed internet service providers (ISP) to make some traffic run faster or block other services, so long as they disclose this information to all subscribers.
Federal Reserve Adopts Final Rule Implementing Enhanced Prudential Standards for Certain Domestic Bank Holding Companies and Foreign Banking Organizations
On February 18, 2014, the Board of Governors of the Federal Reserve System approved its final rule implementing enhanced prudential standards for certain domestic bank holding companies and foreign banking organizations (the Final Rule). While the Final Rule does not implement every provision of the December 2011 and December 2012 proposed rules, the Final Rule still requires enhanced standards of liquidity, risk management, and capital for covered institutions. Compliance with certain of the provisions of the Final Rule begins January 1, 2015.