• Securities industry participants should be well-prepared for the introduction of a shortened settlement period for most broker-dealer securities transactions.[1]  Effective on September 5, 2017, amended Exchange Act Rule 15c6-1 prohibits a broker-dealer from effecting or entering into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than T+2, unless otherwise expressly agreed to by the parties at the time of the transaction.[2]  As the SEC has explained: “The amended rule [applies] the T+2 settlement cycle to the same securities transactions currently covered by the T+3 settlement cycle.  These include transactions for stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships that trade on an exchange.”[3]

  • McMAHON AT 30
    Securities Arbitration Commentator | (06/07/2017)

    Ted Krebsbach comments on his role in landmark Supreme Court Shearson/American Express v. McMahon ruling as Securities Arbitration Commentator looks back 30 years later.

  • The SEC has instituted administrative proceedings against Wilson-Davis & Company (WDCO), a Utah broker-dealer, and certain associated persons for, among other things, improperly claiming the “bona- fide market making” exception to the requirement in Rule 203 of Regulation SHO to obtain a “locate” of stock before effecting short sales.

  • Brian Walsh speaks on the possible narrowing of CFTC enforcement under President-Elect Trump.

  • Corporations and their independent auditors should note three recent SEC auditor independence cases. Auditor independence cases typically arise from financial, employment, or business ties between auditor and client. But these three cases arose from "inappropriately close personal relationships" between audit firm and client personnel, a first for independence cases according to SEC Enforcement Director Andrew Ceresney. The Commission charged not only the audit firm and the partners involved, but also the financial executives at the clients who were involved. The respondents settled the cases on filing and neither admitted nor denied the SEC’s finding. This summary is drawn from the Commission’s ceaseand-desist orders.

  • The Commodity Futures Trading Commission (“CFTC”) announced on April 4, 2016, that it would make a $10 million award to a whistleblower through authority provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This is the third whistleblower award made by the CFTC, dwarfing the prior awards of $290,000, announced on September 29, 2015, and $240,000, announced on May 20, 2014.