MSRB Amendments to Underwriter Fair Dealing Proposal

On November 3, the MSRB filed amendments to its proposal regarding the duties of underwriters of municipal securities to state and local governments. The amendments would enhance certain disclosure requirements for underwriters as well as clarify the risk disclosure requirements of the proposal. Comments on the proposal should be submitted to the SEC. MSRB Release. MSRB Amendments.

Amendments to the Market Abuse Directives – 10 Key Points

On October 20, the European Commission tabled proposals to revise the Market Abuse Directive (MAD). The proposals seek to address five broad problems with MAD identified by the European Commission: (i) gaps in the regulation of new markets, platforms and OTC trading in financial instruments; (ii) gaps in the regulation of commodities and commodity derivatives; (iii) a current inability on the part of Regulators to enforce MAD; (iv) a lack of legal certainty which is currently undermining the effectiveness of MAD and (v) current administrative burdens placed on small and medium sized companies by MAD. Click here to read more.

SEC Rules for Rating Agencies

On November 23, the SEC adopted rule amendments, effective February 2, 2010, imposing additional disclosure and conflict of interest requirements on NRSROs. Final Rule.

Also on November 23, the SEC proposed rule amendments and a new rule that would require NRSROs to furnish new annual reports describing certain compliance measures and provide additional revenue information. The SEC also announced that it is deferring consideration of action with respect to a rule that would have required NRSROs to either: (a) provide a report describing how procedures and methodologies for rating structured finance products differ from those of other rated products when issuing a structured finance credit rating or (b) use different rating symbols for structured finance products. The SEC is also soliciting comments on: (i) alternative ways to differentiate structured finance credit ratings and (ii) whether the rule amendment, which was adopted to make it easier to determine and monitor non-issuer-paid credit ratings for structured finance products, should be applied before the rule became effective. Comments are requested to be received on or before February 2, 2010. Proposed Rules.