Securities industry participants should be well-prepared for the introduction of a shortened settlement period for most broker-dealer securities transactions. 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. 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.”
What is a Regulation SHO bona-fide market maker? As discussed below, this actually is a trick question, because Regulation SHO does not contemplate that a broker-dealer would have the status of a “bona-fide market maker,” but focuses on whether a market maker is engaged in “bona-fide market making activities.”
James Goldfarb and Steve Crimmins comment on how Justices’ Securities Docket Could Reflect Class-Action Focus.
Did Bank of America and JPMorgan Chase breach their state-law fiduciary and contractual obligations to mutual fund clients by not telling them about certain beneficial fee arrangements?
The U.S. Supreme Court, which has signaled a strong interest in class securities litigation, could resolve the question during its coming term ( Holtz v. JPMorgan Bank N.A., U.S., No. 16-1536, petition filed 6/22/17; Goldberg v. Bank of America N.A., U.S., No. 16-1541, petition filed6/21/17).
Michele Rose, Experienced Securities Litigator, Joins Murphy & McGonigle
Steve Feldman comments on Hobby Lobby’s purchase of smuggled artifacts.
Murphy & McGonigle Partner, Lionel André, was elected to the D.C. Bar Health Law Section Steering Committee. Mr. André will serve a three-year term on the Steering Committee, starting on July 1, 2017. "It is an honor for me to join the Steering Committee for the Health Law Section of the D.C. Bar," André said.