Henry A. Davis Editor

Citation

Davis, H.A. (2010), "Henry A. Davis Editor", Journal of Investment Compliance, Vol. 11 No. 3. https://doi.org/10.1108/joic.2010.31311caa.001

Henry A. Davis Editor

Article Type: Editor column From: Journal of Investment Compliance, Volume 11, Issue 3

We begin this issue with an article by Andrew Weissman, Andrea Robinson, Christopher Davies, John Valentine, Theresa Titolo, and Jennifer Birlem that analyzes the Supreme Court decision in Merck & Co. v. Reynolds that sharply curtails the ability of defendants to use statute of limitations defense in private securities litigation. Then Russell Sacks and Michael Blankenship explain the SEC’s proposal for a large trader reporting system, in which large traders would be required to identify themselves to the SEC. The SEC plans to use the data to facilitate its ability to assess the impact of trading activity, to reconstruct trading activity following periods of unusual market volatility, and to analyze significant market events for regulatory purposes. Jessica Forbes, Gregory Gnall, and Christine Lombardo discuss the SEC’s adoption of a short sale circuit breaker rule, under which a security trading on a national securities exchange whose price has declined by 10 percent or more from the prior day’s closing price may only be sold short for the remainder of that day and the following day at an increment above the current national best bid. After a long public process, the SEC reimposed a form of “alternative uptick rule” that is intended to balance its interest in restoring investor confidence after the significant recent market turmoil with its recognition of the benefits of short selling in providing liquidity and price efficiency and in correcting upward stock price manipulation. Next Michael R. Weissmann and Paul M. Tyrrell discuss a FINRA proposal to add a new registration category, qualification examination, and continuing education requirements for back office and operations professionals, believing that such requirements are needed to help ensure that investor protection mechanisms are in place in all areas of a member firm’s business that could harm a customer, a firm, the integrity of the marketplace, or the public. Elisabeth Bremner and Sumitra Subramanian tell the story of the FSA’s largest-ever fine on an individual, relating to a share ramping scheme, and call attention to the FSA’s increased focus on holding senior management account for failings. William Yonge explains the recently enacted UK Financial Services Act 2010, which mainly amends the Financial Services and Markets Act 2000 in order to give the UK Financial Services Authority new objectives and duties and extend its powers variously, and the new Coalition Government’s proposals for a new regulatory structure. Finally, a summary of Selected FINRA Regulatory Notices issued in April, May, and June 2010 covers FINRA’s guidance on master and sub-account arrangements; the obligation of broker-dealers to conduct reasonable investigations in Regulation D offerings; the new requirement to report asset- and mortgage-backed securities transactions to the Trade Reporting and Compliance Engine (TRACE); a new requirement to report over-the-counter trades in equity securities to FINRA within 30 seconds of execution; new product codes for customer complaint reporting related to variable annuities, fixed annuities, equity-indexed annuities, and life settlements; a new pilot program permitting FINRA to halt off-exchange trading in securities for which the primary listing market has issued a trading pause due to extraordinary market volatility; and descriptions of selected disciplinary actions.

Henry A. DavisEditor