Decision on Proposed Tick­Size Pilot Delayed

Discontinuance of Prospectus Repository System Service Proposed

On February 26th, the SEC designated May 6, 2015 as the date by which it will act on the proposed Joint Industry Plan that would implement a one­year tick­size pilot. SEC Release No. 34­74388.

The Depository Trust Company

Discontinuance of Prospectus Repository System Service Proposed

On February 24th, the SEC provided notice of The Depository Trust Company’s filing of a proposal that would discontinue the Prospectus Repository System Service. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of March 2. SEC Release No. 34­74358.

International Swaps and Derivatives Association

ISDA Proposes Derivatives Reforms

On February 26th, the International Swaps and Derivatives Association published a paper outlining key principles and initiatives for the improvement of regulatory transparency and trade reporting of derivatives activity. ISDA Press Release.

Municipal Securities Rulemaking Board

Accelerated Approval Granted to Proposed Professional Qualification Requirements

On February 26th, the SEC granted accelerated approval to the Municipal Securities Rulemaking Board’s proposed amendments to MSRB Rules G­1, on separately identifiable department or division of a bank; G­2, on standards of professional qualification; G­3, on professional qualification requirements; and D­13, on municipal advisory activities. The amendments establish professional qualification requirements for municipal advisors and their associated persons. SEC Release No. 34­74384.

SIPA Doesn’t Include Inflation Insurance

On February 20th, the Second Circuit addressed whether the Securities Investor Protection Act (“SIPA”) permits an inflation or interest adjustment to “net equity” claims for customer property. Former investors of Bernard L. Madoff Investment Securities (“BLMIS”) appeal from a bankruptcy court order approving the calculation of their “net equity” claims under SIPA to be the amount that a customer deposited into his or her BLMIS account, less any amount that he or she withdrew from the account, without an adjustment for inflation or interest. Affirming that calculation the Second Circuit held that as a matter of law, SIPA does not permit an inflation or interest adjustment to “net equity” claims for customer property. An inflation adjustment goes beyond the scope of SIPA’s intended protections and is inconsistent with SIPA’s statutory framework. In re: Bernard L. Madoff Investment Securities, LLC.