Author Archives: Tim

About Tim

Tim is a Compliance Associate at HedgeOp Compliance, LLC

FINRA 5131 Anti-Spinning Rule Delayed

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On May 18, 2011, the U.S. Securities and Exchange Commission approved certain amendments to the originally adopted version of FINRA Rule 5131 (the “anti-spinning rule”).  Most importantly, the recent amendments delay the implementation date from May 27, 2011 until September 26, 2011.  In addition, the old FINRA Rule 5131(b)(1) is deleted.  Such provision had required FINRA members to establish and maintain policies and procedures to ensure that investment banking personnel have no involvement or influence in the new issue allocation decisions of FINRA members.

The rule change can be found here.

President nominates SEC commissioners

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President Obama plans to nominate Republican Daniel Gallagher and Democrat Luis Aguilar as commissioners at the U.S. Securities and Exchange Commission.

Gallagher is currently a partner in the securities department of Wilmer Cutler Pickering Hale and Dorr LLP.  He previously worked at the SEC from 2006 through 2010.  Gallagher would replace Commissioner Kathleen Casey should he be confirmed.  Kathleen Casey’s term expires later this year.  She is one of two Republicans on the five-person Commission and Gallagher would keep the party split 3-2.

Current SEC Commissioner Luis Aguilar was appointed in 2008.  The term expired last year but he has continued serving in that position, as permitted by law.

Both nominations are subject to approval by the U.S. Senate.

AIMA to engage with U.S. authorities on implementation of Dodd-Frank Act

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The Alternative Investment Management Association (“AIMA”), a global hedge fund association, announced last week that it will meet with U.S. policymakers and supervisors in September regarding the Dodd-Frank Wall Street Reform and Consumer Protection Act.  AIMA will focus its efforts on several key areas including: registration of hedge fund managers and reporting of systematically relevant data in the interests of a broader financial stability assessment; how smaller managers may be impacted by the legislation; OTC derivatives; the revised “Volcker Rule”; potential tax issues; and the goal of global regulatory consistency.

Todd Groome, Chairman of AIMA, said of the meetings:

“AIMA, as the global hedge fund association, has historically worked closely with U.S. and international supervisors, and we look forward to engaging with U.S. authorities in September and beyond regarding numerous issues related to the implementation of the Dodd-Frank Act, as well as its interaction with reforms in other jurisdictions.

“AIMA supports increased dialogue with supervisors, and the goal of improved trading and market transparency by the industry. That includes periodic reporting of data to supervisors so they may better assess broad market and potential systemic risks.   Hedge funds do not present a systemic risk, but our industry can contribute to the analysis of systemic risk and financial stability.

“We also support OTC derivatives reform, including the introduction of central clearing. We believe central clearing of eligible contracts is a very important reform aimed at improving financial stability. However, we remain focused on certain implementation issues, such as direct access, governance and capital or margin requirements.

“From the outset, we have also called for a globally consistent and coordinated regulatory framework. Many of the measures that feature in the Dodd-Frank Act are being discussed in other jurisdictions, and it is desirable that there is a large degree of consistency in terms of approach and implementation. If that consistency is not achieved it could lead to unnecessary duplication and increased costs.”

AIMA expresses its views on this legislation in more detail in its June 28, 2010 statement on U.S. financial reform.