Financial Regulatory Forum

New Shanghai IPOs defy speculation restraints

July 30, 2009

By Lu Jianxin and Edmund Klamann
SHANGHAI, July 30 (Reuters) – Two eye-popping debuts on the Shanghai Stock Exchange this week, its first listings in nearly a year, defied recent reforms to curb speculation and suggest China could struggle to keep asset price bubbles under control.

ANALYSIS-Enforcement key to curbing naked short selling

July 30, 2009

By Leah Schnurr
NEW YORK, July 29 (Reuters) – Efforts by U.S. securities regulators to clamp down on an abusive type of short selling could help prevent manipulation in the market, but the rules amount to nothing without better enforcement.

NASDAQ backs ban on “flash” orders – U.S. Senate critic Schumer

July 28, 2009

Nasdaq backs ban on ‘flash’ trading -Schumer
By Rachelle Younglai and Jonathan Spicer
WASHINGTON/NEW YORK, July 28 (Reuters) – The Nasdaq Stock Market supports a ban on so-called “flashes,” order types that it and other stock-trading venues send to a select group of traders fractions of a second before revealing them publicly, Senator Charles Schumer said on Tuesday.

U.S. SEC adopts permanent ban on “naked” short selling

July 28, 2009

WASHINGTON, July 27 (Reuters) – U.S. securities regulators made permanent a rule designed to clamp down on an abusive type of market activity known as naked short selling, the Securities and Exchange Commission said on Monday.

U.S. SEC approves two firms to clear credit-default swaps

July 24, 2009

WASHINGTON, July 23 (Reuters) – ICE Clear Europe and Eurex Clearing AG have been given permission to clear credit default swaps, a type of derivative that exacerbated the global financial crisis, the Securities and Exchange Commission said on Thursday. (more…)

Democrats vow fight with banks over U.S. consumer protections

July 22, 2009

U.S. Representative Barney Frank (R) By Kevin Drawbaugh
WASHINGTON, July 22 (Reuters) – Congressional Democrats pledged on Wednesday to engage the banking industry in a summer-long debate over the Obama administration’s call for the creation of a U.S. Consumer Financial Protection Agency. (more…)

U.S. agencies unveil crackdown on OTC derivatives

July 22, 2009

By Kevin Drawbaugh and Christopher Doering h
WASHINGTON, July 22 (Reuters) – Over-the-counter derivatives markets, a “dark corner” of the U.S. financial system, would face much greater public and government scrutiny under proposals detailed by regulators on Wednesday.

U.S. court orders SEC to reconsider annuity rule

July 21, 2009

WASHINGTON, July 21 (Reuters) – A U.S. appeals court ordered the Securities and Exchange Commission to reconsider a rule it adopted in the final weeks of former President George W. Bush’s administration to expand scrutiny over annuities linked to equity indexes. (more…)

U.S. Treasury sends credit-rating regulation bill to Congress

July 21, 2009

WASHINGTON, July 21 (Reuters) – The U.S. Treasury Department sent a draft bill to Congress that would prevent credit rating agencies from consulting for the companies they evaluate, and said it hoped new disclosure and conflict-of-interest rules will curb the agencies’ power. (more…)

Obama broker proposal gets Wall Street backing

July 17, 2009

Wall Street TradersBy Kevin Drawbaugh
WASHINGTON, July 17 (Reuters) – A lobbying group for the U.S. securities industry said on Friday it supports an Obama administration proposal to hold brokers to a higher fiduciary standard — matching that of investment advisers — when they give personalized advice to clients. (more…)