On November 4, Fitch assigned a “Negative Outlook” for the entire U.S. RMBS servicer sector based on concern surrounding alleged procedural defects in the foreclosure process. Fitch Release.
On November 2, Fitch updated its criteria for short-term ratings for corporate finance. Fitch Release.
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On November 3, FASB released an exposure draft relating to its proposal to improve the accounting for repurchase agreements and other agreements that entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. Comments on the exposure draft must be submitted by January 15, 2011. FASB Release. Exposure Draft.
On November 4, the SEC extended the compliance date, from November 10, 2010 to February 28, 2011, for the short sale rule which restricts the prices at which a stock can be short sold if its price drops 10% or more in one day. SEC Release. SEC Extension.
On November 3, the SEC adopted a rule requiring brokers and dealers to have risk controls in place before providing their customers with access to the market, in the form of direct access to the applicable exchange or alternative trading system, also known as “sponsored access”. This rule will be effective 60 days from the date of publication of the rule in the Federal Register, and broker-dealers subject to the rule will have six months following the effective date to comply with the requirements. SEC Release.
On November 3, the SEC proposed rules and forms to implement Section 21F of the Securities Exchange Act of 1934, entitled “Securities Whistleblower Incentives and Protection“, which was added under the Dodd-Frank Act. Comments on the proposed rules must be submitted by December 17. SEC Release. SEC Proposed Rule.
On November 3, the SEC, as required by the Dodd-Frank Act, proposed a rule to help prevent fraud, manipulation, and deception in connection with security-based swaps. Comments on the proposed rule must be submitted within 45 days of publication in the Federal Register. SEC Release. SEC Proposed Rule.
On November 3, the SEC published a request for comment on possible money market fund reforms prepared by the President’s Working Group on Financial Markets. Comments must be submitted by January 10, 2011. SEC Release. Report on Money Market Reform.
