8.18.2008 The SEC proposed a plan to consolidate regulatory insider trading surveillance and detection programs by participating self-regulatory organizations and stock exchanges (“Participating Organizations”). The proposed Plan is designed to eliminate regulatory duplication by allocating regulatory responsibility over common New York Stock Exchange (“NYSE Members”) and common FINRA members for the surveillance, investigation, and enforcement of common insider trading rules (“Common Rules”).

The Plan assigns regulatory responsibility over common NYSE Members to NYSE Regulation for surveillance, investigation, and enforcement of insider trading by broker-dealers, and their associated persons, with respect to NYSE-listed stocks and NYSE Arca-listed stocks, irrespective of the marketplace(s) maintained by the Participating Organizations on which the relevant trading may occur. The Plan assigns regulatory responsibility over common FINRA Members to FINRA for surveillance, investigation, and enforcement of insider trading by broker-dealers, and their associated persons, with respect to NASDAQ-listed stocks and Amex-listed stocks, as well as any CHX solely-listed equity security, irrespective of the marketplace(s) maintained by the Participating Organizations on which the relevant trading may occur.

An exchange committee composed of a representative from each of the Participating Organizations to the Plan would meet up to four times a year, but no more often than once per calendar quarter, to discuss the conduct of regulatory responsibilities, identify issues or concerns, and receive and review reports. Costs for insider trading surveillance are shared among Participating Organizations based on their relative trade volume, subject to certain minimum amounts.

Click http://www.sec.gov/news/press/2008/2008-174.htm to access the press release about the initiative.