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.

  • On November 18, 2015, the U.S. Securities and Exchange Commission (the "Commission") voted to propose amendments to Regulation ATS under the Securities Exchange Act of 1934 (the "Exchange Act") that would adopt new Rule 304 of Regulation ATS, which would require an "NMS Stock ATS" to file new Form ATS-N with the Commission.1  Proposed Rule 304 and new Form ATS-N would significantly expand upon the current disclosure requirements of Rule 301(b)(2) of Regulation ATS.  Comment on the proposed amendments must be submitted to the Commission within 60 days of publication of the Proposing Release in the Federal Register. We present the following summary of the Commission's lengthy proposal that will have a significant impact on alternative trading systems ("ATSs"), including so-called "dark pools."