House-Senate Conference Committee Continues Negotiating Financial Regulatory Reform

The House-Senate Conference Committee continues to negotiate financial regulatory reform legislation. Both sides have put forth offers and counter offers in an effort to have the final legislation signed by the President before the July 4th recess.

SEC Announces Proposed Rules for Clearly Erroneous Trades

On Thursday, June 17, 2010, the Securities and Exchange Commission (SEC) announced the filing of proposed rules for breaking clearly erroneous trades. The national securities exchanges and FINRA will file the proposed rules, which will include a "series of thresholds for breaking trades when prices diverge from the 'reference price,' typically the last sale before pricing was disrupted."

Read the SEC's press release

The Fed, OCC, OTS, and FDIC on Incentive Compensation

On Monday, June 21, 2010, the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC) issued final guidance regarding sound incentive compensation arrangements at financial organizations. The policies attempt to curb risky pay policies by ensuring "incentive compensation arrangements at banking organizations appropriately tie rewards to longer-term performance and do not undermine the safety and soundness of the firm or create undue risks to the financial system."

Read the press release from the Federal Reserve