On April 1st, the Second Circuit affirmed the district court's finding that UBS did not violate SEC Rule 10b-16, which requires brokers to disclose to their customers the brokers' margin maintenance requirements. Plaintiffs, UBS margin account holders, claimed that UBS failed to disclose its actual margin rules and failed to provide written notice before it revised those rules, in violation of Rule 10b-16. The Court, however, held that UBS's disclosures did not violate Rule 10b-16(a) even though UBS did not expressly disclose the more complex formulas it employed to calculate plaintiffs' collateral requirements. Where, as here, a broker discloses its generally applicable margin policies and also indicates that more specific information about its margin policies is available to the customer, it need not disclose the precise, complex formulas it uses to calculate its collateral requirements. Moreover, Rule 10b-16(b) does not require a broker to provide advance notice to customers before it changes its margin policies. WC Capital Mgmt. v. LLC v. UBS Securities LLC.