Federal Regulatory Agencies
Federal Regulatory Agencies
News releases, reports, statements and associated documents from federal regulatory agencies ranging from the Securities Exchange Commission to the Commodities Futures Trading Commission
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FCC Media Bureau Issues Public Notice on Comment on National Association of Broadcasters Request for Expedited Retroactive Waiver Extension
WASHINGTON, Dec. 7 -- The Federal Communications Commission's Media Bureau issued the following public notice (MB Docket No. 12-107) on Dec. 6, 2024:* * *
The Media Bureau seeks comment on a National Association of Broadcasters (NAB) request filed November 27, 2024 for an expedited retroactive extension of the waiver of a rule that requires broadcasters to provide an aural representation of visual, non-textual emergency information, such as radar maps or other graphics, on a secondary audio stream (Request)./1 The waiver expired on November 26, 2024. The Media Bureau previously sought comment ... Show Full Article WASHINGTON, Dec. 7 -- The Federal Communications Commission's Media Bureau issued the following public notice (MB Docket No. 12-107) on Dec. 6, 2024: * * * The Media Bureau seeks comment on a National Association of Broadcasters (NAB) request filed November 27, 2024 for an expedited retroactive extension of the waiver of a rule that requires broadcasters to provide an aural representation of visual, non-textual emergency information, such as radar maps or other graphics, on a secondary audio stream (Request)./1 The waiver expired on November 26, 2024. The Media Bureau previously sought commenton a separate NAB petition filed November 15, 2024 requesting modification of that rule and waiver of the rule for 18 months (Petition)./2
The Request indicates that because the waiver expired during the comment period on the Petition, "numerous large television station groups have ceased the display of such weather radar maps and similar visual images," which "will harm the public."/3 Accordingly, we seek comment on whether to grant a retroactive extension of the previous waiver,/4 pending action on the Petition. In response to this Public Notice, commenters should limit their submissions to the question of whether the Bureau should grant a retroactive extension of the waiver, and if so, the appropriate timeframe of such a waiver. Broader issues relevant to resolution of the Petition should be addressed in response to the November 25, 2024 Public Notice.
Filing Requirements. All filings responsive to this Public Notice must reference MB Docket No. 12-107. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 CFR Sec.Sec. 1.415, 1.419, interested parties may file comments and reply comments on or before the dates indicated on the first page of this document. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS). See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998).
* Electronic Filers: Comments may be filed electronically using the Internet by accessing the ECFS: http://apps.fcc.gov/ecfs/.
* Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing.
* Filings can be sent by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail. All filings must be addressed to the Commission's Secretary, Office of the Secretary, Federal Communications Commission.
* Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9050 Junction Drive, Annapolis Junction, MD 20701. U.S. Postal Service first-class, Express, and Priority mail must be addressed to 45 L Street, NE, Washington, DC 20554.
* Effective March 19, 2020, and until further notice, the Commission no longer accepts any hand or messenger delivered filings. This is a temporary measure taken to help protect the health and safety of individuals, and to mitigate the transmission of COVID-19. See FCC Announces Closure of FCC Headquarters Open Window and Change in Hand- Delivery Policy, Public Notice, DA 20-304 (March 19, 2020).
People with Disabilities. To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the FCC's Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice).
Availability of Documents. Comments, reply comments, and ex parte submissions will be available via ECFS. Documents will be available electronically in ASCII, Microsoft Word, and/or Adobe Acrobat.
Additional Information. For additional information, contact Diana Sokolow, Diana.Sokolow@fcc.gov, of the Media Bureau, Policy Division, (202) 418-0588.
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Footnotes:
1/ Request for Expedited Retroactive Extension of Waiver of the National Association of Broadcasters, MB Docket No. 12-107 (filed Nov. 27, 2024) (Request); 47 CFR Sec. 79.2(b)(2)(ii).
2/ Media Bureau Seeks Comment on National Association of Broadcasters Petition for Rulemaking and Extension of Waiver of Accessible Emergency Requirements, Public Notice, MB Docket No. 12-107, DA 24-1184 (rel. Nov, 25, 2024). See also Petition for Rulemaking and Extension of Waiver of the National Association of Broadcasters, MB Docket No. 12-107 (filed Nov. 15, 2024). Comments on the Petition are due December 26, 2024, and reply comments are due January 9, 2025.
3/ Request at 2.
4/ See Accessible Emergency Information, and Apparatus Requirements for Emergency Information and Video Description: Implementation of the Twenty-First Century Communications and Video Accessibility Act of 2010, Memorandum Opinion and Order, 38 FCC Rcd 4982 (2023).
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Original text here: https://docs.fcc.gov/public/attachments/DA-24-1231A1.pdf
SEC Chair Gensler Issues Remarks at ABA Federal Regulation of Securities Winter Meeting
WASHINGTON, Dec. 6 -- The Securities and Exchange Commission issued the following remarks entitled "Capital Markets, Competition, and the SEC" on Dec. 5, 2024, by Chair Gary Gensler at the American Bar Association's Federal Regulation of Securities Winter Meeting.* * *
Before getting into the meat of today's remarks, I want to say what a remarkable privilege it is to serve in this role. We live in a big, diverse country of 335 million people, all of whom benefit from the SEC. The agency, with authority over the $120 trillion capital markets, touches every part of our economy.
In such a big ... Show Full Article WASHINGTON, Dec. 6 -- The Securities and Exchange Commission issued the following remarks entitled "Capital Markets, Competition, and the SEC" on Dec. 5, 2024, by Chair Gary Gensler at the American Bar Association's Federal Regulation of Securities Winter Meeting. * * * Before getting into the meat of today's remarks, I want to say what a remarkable privilege it is to serve in this role. We live in a big, diverse country of 335 million people, all of whom benefit from the SEC. The agency, with authority over the $120 trillion capital markets, touches every part of our economy. In such a bigcountry, it goes without saying that others could do this job well, but I've had the privilege of serving alongside nearly 5,000 dedicated SEC staff since April 2021. They are so deeply committed to the American public and making sure that markets work for investors and issuers.
As is customary, I'd note my views are my own as Chair of the SEC, and I am not speaking on behalf of my fellow Commissioners or the staff.
Now I want to turn to the meat: the importance of capital markets, competition, and the SEC.
Capital Markets
First, the U.S. economy and, importantly, the public--both investors and issuers--benefit from our large, vibrant $120 trillion capital markets. They are part of our comparative advantage as a nation, undergirding the dollar's dominance[1] and our role in the world.
We are the capital markets of choice for issuers and investors around the globe. At more than 40 percent of the world's capital markets, we punch above our weight class of just 24 percent of the world economy.[2]
Our capital markets are nearly five times larger than our combined $26 trillion banking[3] and credit union sector.[4] Compared to other major economies, this ratio, and our significant reliance on the capital markets, is a distinguishing element of the United States. I believe this is a feature, not a bug.
Finance, at its core, is about the pricing and allocation of money and risk. The nonbank sector plays a critical role in that price discovery. Further, transparency and liquidity in the public capital markets provide a public good, leading to more efficient allocation and pricing of capital. Academic research has long documented that strong capital markets promote economic growth and may even provide greater resilience in crises.
A distinguishing and critical part of our economy is that debt capital markets facilitate 75 percent of debt financing of non-financial corporations. These markets are varied and deep, which benefits investors and borrowers. Compare this to Europe, the U.K., and Asia, where only 12-24 percent is raised in capital markets.[5]
Americans looking to purchase a home, a car, or have a credit card, also have long benefitted from the development of the nearly $14 trillion mortgage and asset securitization markets.[6]
Money market funds at nearly $7 trillion[7] today generate higher returns on average and are more secure for savers and investors than bank deposits.
Further, well-regulated collective investment vehicles are among the great financial innovations of the last 90 years. At more than $30 trillion,[8] they provide everyday investors diversification and lower costs than buying individual stocks or bonds. As Jack Bogle aptly said: "Don't look for the needle in the haystack. Just buy the haystack."[9]
That's not to say that the capital markets are not without risk. We shouldn't, though, paint with a broad brush. Not every risk is the same. In fact, the financial sector is about allocating and pricing risk, not eliminating it. It's important to focus on the activities that are more likely to contribute to fragility in the system.
On balance, our entire economy benefits from the breadth, depth, and liquidity of our capital markets.
Competition
My second main point is that robust competition is critical to the effective functioning of capital markets and maintaining America's leadership. The American public, whether sitting at kitchen or boardroom tables, benefit from competition in the capital markets, which lowers the cost of borrowing and raises returns on investments.
In essence, if we lower what economists call economic rents in the markets, that's good for folks borrowing and investing money. Investors get better returns. Issuers can raise money more efficiently. When market participants know that they can get a competitive price, they are more likely to invest in the primary market in the first place. Moreover, competition and efficiency allow prices to come closest to fundamental value, aiding price discovery and capital formation.
Efficiency and competition also promote greater depth of liquidity in the markets. As they say, liquidity begets liquidity.
The nonbank sector provides important alternatives and competition to the banking sector. The capital markets provide robust competition for those looking to borrow in both the commercial and consumer credit markets. Further, the nearly $30 trillion private funds market provides competition to the registered funds market and the public markets. This competition benefits investors, savers, borrowers, and issuers, as well as banks themselves.[10]
Since antiquity, though, finance has tended toward centralization and concentration--whether the Medici family back in the 15th century or J.P. Morgan a century ago. Thus, we must remain vigilant to areas where concentration and potential economic rents have built up or may do so in the future.
The SEC
Third, Congress understood these two main tenets: the importance of both capital markets and competition. They also understood the need for common-sense rules of the road that would lower risk and build trust.
When President Franklin Roosevelt and Congress enacted the securities laws in the 1930s, they had lived through the 1920s when hucksters, fraudsters, scam artists, and Ponzi-like schemers took advantage of investors. They learned what happens when unregulated markets were left on their own. Further, they understood the importance of competition to the functioning of capital markets.
One of the ways I think about this is through analogies to common-sense rules of the road for driving or a football game.
Over the years, I've slept better knowing that when one of my three daughters borrows the car keys, that there are common-sense rules of the road to protect them. There are stop signs, traffic lights, and speed limits. There are prohibitions against drunk driving. I sleep better knowing there are also cops on the streets to enforce these rules and keep my daughters safe.
Common-sense rules of the road for driving help protect against risk but also promote economic activity.
Now, imagine what it would be like if the National Football League didn't have any rules of the road. Imagine if it didn't have referees. There would be mayhem on the field and injuries to players.
Common-sense rules for football not only protect the players, but also build confidence in the integrity of the game for fans. Thus, rules and refs help promote the business of the game.
This is just as true for the world of finance. Common-sense rules lower risk and build trust among the participants in the markets.
Congress has understood that technology and business models are forever changing. That's why over the last 90 years, Congress and multiple Presidents repeatedly enhanced regulation of the markets.[11] That's also why the SEC was set up with authority to update our rules for everchanging capital markets.
We at the SEC have a duty to investors and issuers alike to regularly update our rules to drive greater efficiency and resiliency in the markets--to continue to look for ways to lower cost and lower risk. As I'm sure the athletes who competed in Paris would agree, even a gold medalist must keep training.
Updating the Rules of the Road
That's why these last four years we've been working to drive greater efficiency, which lowers cost. That's why we've worked to drive greater resiliency, which lowers risk. That's why we've worked to drive greater integrity, which builds trust.
We've done so in multiple areas, including market structure, disclosure, resiliency, corporate governance, and accounting and auditing.
I'm going say a few words about our market structure work in two of the most consequential markets, the Treasury and equity markets. We've focused on the $28 trillion Treasury markets[12] because not only they are the base of our capital markets, but there have been repeated jitters over the years.[13] We've focused on the $60 trillion equity markets because they are the largest of our markets, more than half of U.S. households are invested in stocks directly or indirectly,[14] and there hadn't been an update in nearly 20 years.
Treasury Markets
The Treasury markets are integral to how the Federal Reserve conducts monetary policy. They are how we, as a government and taxpayers, raise money. We are the issuer.
These markets have three relevant characteristics: deep participation of both bank and nonbank intermediaries, use of leverage, and repeated jitters.
We've seen those jitters in the 1980s, the 2008 crisis, the 2020 dash-for-cash, and the regional bank crisis in March 2023.
Given the importance, leverage, interconnectedness, and repeated jitters of the Treasury markets, we embarked on key reforms with Secretary Janet Yellen's guidance and working with the Federal Reserve, Federal Reserve Bank of New York, and Commodity Futures Trading Commission.
We've broadened the scope of transactions required for central clearing.[15] Further, by March 2025, Treasury clearinghouses must separate proprietary margin from customer margin and further facilitate access to central clearing.[16] These reforms help promote anonymized all-to-all trading, improving competition and resiliency.
As part of implementing these reforms, last month the Commission and staff took important actions regarding various proposals of the Fixed Income Clearing Corporation in furtherance of the goal to bring more competition and resiliency to the U.S. Treasury markets.[17]
Equity Markets
Though the U.S. equity markets are the deepest, most liquid in the world, we can't take that leadership for granted. Comprehensive rules of the road for the national market system hadn't been updated in nearly two decades. That's why I'm proud that this fall we unanimously voted to update national market system rules.[18] Your clients as well as everyday investors will benefit from more efficient equity markets where stocks can be quoted in narrower increments down to a half of a penny. They also will benefit from a separate rule we adopted unanimously to update information regarding brokers' execution quality.[19]
Further, everyday investors now benefit from the shortening of the settlement cycle to one day.[20] This ensures that investors who sell their stock on a Monday get their cash on a Tuesday. You don't have to wait until Wednesday.[21]
Markets though are forever evolving. Just this past month, the Commission approved an application for expanding trading hours to facilitate overnight trading on a national securities exchange.[22] Such a development is just another reminder of the importance of our capital markets. It's a reminder of how competition fosters innovation in our capital markets. It's also a reminder, though, of how important it is to have common-sense rules of the road to promote markets. That's why I was glad that overnight trading on the exchange would only start after expanding transparency and providing additional investor protections.
Conclusion
My remarks today might seem to be an ode to the capital markets, competition, and the SEC. Well, that's because it is.
I think every American benefits from our unique combination of regulation, robust competition, and large, deep capital markets. As I've said, though, the benefits of our capital markets are highly dependent on robust competition and regulation.
We need competition to lower costs, lower risks, promote innovation, and enhance access for issuers and investors.
We need well-regulated securities markets to promote trust. It's what brings investors and issuers to the market like fans to a football game. It's what underpins the world's largest capital markets. It's what has contributed to our nation's great economic success these last 90 years.
That's why I have felt so privileged to lead this mission-driven agency these four years and do my part on behalf of the American public.
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Footnotes:
[1] See Gary Gensler, "Exorbitant Privilege: Responsibilities and Challenges" (Dec. 4, 2023), available at https://www.sec.gov/newsroom/speeches-statements/gensler-prepared-remarks-council-foreign-relations-12042023.
[2] See Carol Bertaut et al., "The International Role of the U.S. Dollar" (June 23, 2023), Figure 1, available at https://www.federalreserve.gov/econres/notes/feds-notes/the-international-role-of-the-us-dollar-post-covid-edition-20230623.html.
[3] See Board of Governors of the Federal Reserve System, "Assets and Liabilities of Commercial Banks in the United States," available at https://www.federalreserve.gov/releases/h8/current/default.htm. Total assets of approximately $23.45 trillion as of Nov. 20, 2024 (Table 2, Line 33).
[4] Federally insured credit unions had $2.26 trillion in assets at year-end 2023, $2.17 trillion at year-end 2022. Credit union deposits were $1.9 trillion at year-end 2023 (and in Q2 2024). See National Credit Union Administration, "Quarterly Credit Union Data Summary 2024 Q2" (June 2024), available at https://ncua.gov/files/publications/analysis/quarterly-data-summary-2024-Q2.pdf.
[5] See SIFMA, "2024 Capital Markets Fact Book" (July 2024), Page 5, available at https://www.sifma.org/wp-content/uploads/2023/07/2024-SIFMA-Capital-Markets-Factbook.pdf.
[6] For mortgage-backed securities and asset-backed securities, see SIFMA, "US Mortgage Backed Securities Statistics" (October 2024), available at https://www.sifma.org/resources/research/us-mortgage-backed-securities-statistics/ and "US Asset Backed Securities Statistics" (October 2024), available at https://www.sifma.org/resources/research/us-asset-backed-securities-statistics/.
[7] See Securities and Exchange Commission, "Money Market Funds Statistics" (filings received through Nov. 14, 2024), Table 2, available at https://www.sec.gov/files/investment/mmf-statistics-2024-10.pdf.
[8] See Securities and Exchange Commission, "Registered Fund Statistics" (period ending June 2024), Table 2.1, available at https://www.sec.gov/files/investment/im-registered-fund-statistics-20241106.pdf.
[9] See Paul A. Merriman, "The genius of John Bogle in 9 quotes" (Nov. 25, 2016), available at https://www.marketwatch.com/story/the-genius-of-john-bogle-in-9-quotes-2016-11-23.
[10] See Gary Gensler, "A Feature, Not a Bug: The Important Role of Capital Markets in the U.S." (Oct. 22, 2024), available at https://www.sec.gov/newsroom/speeches-statements/gensler-remarks-bloomberg-global-regulatory-forum-102224#_ftn2.
[11] For example, in 1975--largely to address fixed commissions and other anticompetitive practices by market intermediaries--Congress found that it was in the public interest and for the protection of investors to assure "fair competition among brokers and dealers, among exchange markets, and between exchange markets and markets other than exchange markets." Congress inserted the word competition in the securities laws 20 places.
In 1996, Congress returned to competition. They mandated that in our rulemaking, the Commission must consider efficiency, competition, and capital formation, in addition to those earlier tenets of investor protection and the public interest. This new requirement applied to all of our foundational statutes and to rulemaking affecting all investors, issuers, and intermediaries.
[12] See U.S. Treasury Monthly Statement of the Public Debt, available at https://fiscaldata.treasury.gov/datasets/monthly-statement-public-debt/summary-of-treasury-securities-outstanding.
[13] See Gary Gensler, "From Hamilton to Yellen" (Sept. 26, 2024), available at https://www.sec.gov/newsroom/speeches-statements/gensler-remarks-treasury-market-conference-092624.
[14] See Federal Reserve Board, "Changes in U.S. Family Finances from 2019 to 2022" (October 2023), Page 19, available at https://www.federalreserve.gov/publications/files/scf23.pdf.
[15] See Securities and Exchange Commission, "SEC Adopts Rules to Improve Risk Management in Clearance and Settlement and Facilitate Additional Central Clearing for the U.S. Treasury Market" (Dec. 13, 2023), available at https://www.sec.gov/news/press-release/2023-247.
[16] Starting at the end of 2025, certain cash transactions will have to be cleared. Starting in June 2026, certain repo and reverse repo transactions must be cleared.
[17] See Gary Gensler, "Statement on Fixed Income Clearing Corporation Rules" (Nov. 25, 2024), available at https://www.sec.gov/newsroom/speeches-statements/statement-fixed-income-clearing-corporation-rules.
[18] See Securities and Exchange Commission, "SEC Adopts Rules to Amend Minimum Pricing Increments and Access Fee Caps and to Enhance the Transparency of Better Priced Orders" (Sept. 18, 2024), available at https://www.sec.gov/newsroom/press-releases/2024-137/.
[19] See Securities and Exchange Commission, "SEC Adopts Amendments to Enhance Disclosure of Order Execution Information" (March 6, 2024), available at https://www.sec.gov/newsroom/press-releases/2024-32.
[20] See Securities and Exchange Commission, "SEC Finalizes Rules to Reduce Risks in Clearance and Settlement" (Feb. 15, 2023), available at https://www.sec.gov/newsroom/press-releases/2023-29.
[21] See Gary Gensler "Shortening the Settlement Cycle: Benefitting Everyday Investors" (June 20, 2024), available at https://www.sec.gov/newsroom/speeches-statements/gensler-remarks-accelerated-settlement-uk-conference-062024.
[22] See Securities and Exchange Commission, "In the Matter of the Application of 24X National Exchange LLC for Registration as a National Securities Exchange" (Nov. 27, 2024), available at https://www.sec.gov/files/rules/other/2024/34-101777.pdf.
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Original text here: https://www.sec.gov/newsroom/speeches-statements/gensler-remarks-american-bar-association-120524
Litigation: SEC Vs. Jordan Qsar, Grant Witherspoon, Austin Bernard, Chase Lambert
WASHINGTON, Dec. 6 -- The Securities and Exchange Commission issued the following litigation release (No. 3:24-cv-00570; S.D. Cal. filed March 26, 2024) involving Jordan Qsar, Grant Witherspoon, Austin Bernard and Chase Lambert:* * *
SEC Obtains Final Judgment Against Jordan Qsar, Austin Bernard, and Grant Witherspoon in Connection with Insider Trading
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On November 18, 2024, the Securities and Exchange Commission obtained a final judgment against Jordan Qsar. Austin Bernard and Grant Witherspoon, all former minor league baseball players the SEC charged with insider trading in advance ... Show Full Article WASHINGTON, Dec. 6 -- The Securities and Exchange Commission issued the following litigation release (No. 3:24-cv-00570; S.D. Cal. filed March 26, 2024) involving Jordan Qsar, Grant Witherspoon, Austin Bernard and Chase Lambert: * * * SEC Obtains Final Judgment Against Jordan Qsar, Austin Bernard, and Grant Witherspoon in Connection with Insider Trading * * * On November 18, 2024, the Securities and Exchange Commission obtained a final judgment against Jordan Qsar. Austin Bernard and Grant Witherspoon, all former minor league baseball players the SEC charged with insider trading in advanceof the December 6, 2021 announcement that Jack in the Box Inc. would acquire Del Taco Restaurants, Inc.
The complaint alleges that Jordan Qsar learned about the acquisition from a friend and former teammate who was working on the acquisition at Jack in the Box. Qsar traded on the inside information and tipped Bernard and Witherspoon, who used the information to purchase Del Taco call options. According to the complaint, Qsar made about $56,500 in illegal trading profits, Bernard made approximately $64,700 and Witherspoon made approximately $42,800.
Qsar consented to a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. Qsar was ordered to pay disgorgement in the amount of $56,470.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $9,986.60. Qsar was also ordered to pay a civil penalty in the amount of $63,194.00.
Bernard consented to a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Bernard was ordered to pay disgorgement in the amount of $ 64,693.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $ 11,440.82. Bernard was also ordered to pay a civil penalty in the amount of $86,877.00.
Witherspoon consented to a final judgment permanently enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Witherspoon was ordered to pay disgorgement in the amount of $42,768.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $7,563.44. Witherspoon was also ordered to pay a civil penalty in the amount of $48,143.00.
The case originated from the SEC's Market Abuse Unit's Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.
The SEC's litigation was led by Charles Canter and supervised by Douglas M. Miller of the Los Angeles Regional Office. The SEC's investigation was conducted by Sara Kalin of the Market Abuse Unit, with assistance from John Rymas of the Market Abuse Unit's Analysis and Detection Center. It was supervised by Assistant Regional Director Diana Tani and Market Abuse Unit Chief Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of California, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority (FINRA).
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26186
Federal Financial Regulatory Agencies, State Regulators Issue Statement on Elder Financial Exploitation
ALEXANDRIA, Virginia, Dec. 6 -- The National Credit Union Administration issued the following joint statement on Dec. 4, 2024, with the Comptroller of the Currency, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Federal Reserve, Financial Crimes Enforcement Network and state financial regulators:Five federal financial regulatory agencies, the Financial Crimes Enforcement Network (FinCEN), and state financial regulators issued a statement today to provide supervised institutions with examples of risk management and other practices that may be effective in combatting ... Show Full Article ALEXANDRIA, Virginia, Dec. 6 -- The National Credit Union Administration issued the following joint statement on Dec. 4, 2024, with the Comptroller of the Currency, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Federal Reserve, Financial Crimes Enforcement Network and state financial regulators: Five federal financial regulatory agencies, the Financial Crimes Enforcement Network (FinCEN), and state financial regulators issued a statement today to provide supervised institutions with examples of risk management and other practices that may be effective in combattingelder financial exploitation.
Older adults who experience financial exploitation can lose their life savings and financial security and face other harm. A FinCEN financial trend analysis of Bank Secrecy Act reports over a one-year period ending in June 2023 found that about $27 billion in reported suspicious activity was linked to elder financial exploitation.
Banks, credit unions, and other supervised institutions play an important role in combatting elder financial exploitation and supporting their customers who experience these crimes. The statement provides examples of risk management and other practices that supervised institutions may use to help identify, prevent, and respond to elder financial exploitation, including but not limited to:
* Developing effective governance and oversight, including policies and practices to protect account holders and the institution
* Training employees on recognizing and responding to elder financial exploitation
* Using transaction holds and disbursement delays, as appropriate, and consistent with applicable law
* Establishing a trusted contact designation process for account holders
* Filing suspicious activity reports to FinCEN in a timely manner
* Reporting suspected elder financial exploitation to law enforcement, Adult Protective Services, and other appropriate entities
* Providing financial records to appropriate authorities where consistent with applicable law
* Engaging with elder fraud prevention and response networks
* Increasing awareness through consumer outreach
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Attachment:
* Interagency Statement on Elder Financial Exploitation (https://ncua.gov/newsroom/press-release/2024/agencies-issue-statement-elder-financial-exploitation/interagency-statement)
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Original text here: https://ncua.gov/newsroom/press-release/2024/agencies-issue-statement-elder-financial-exploitation
FCC Wireless Bureau Issues Public Notice on Effective Date of Supplemental Coverage From Space Rules
WASHINGTON, Dec. 6 -- The Federal Communications Commission's Wireless Telecommunications Bureau issued the following public notice (GN Docket No. 23-65; IB Docket No. 22-271) on Dec. 5, 2024:* * *
By this Public Notice, the Wireless Telecommunications Bureau and Space Bureau (collectively, the Bureaus) announce that the U.S. Office of Management and Budget (OMB) has approved the Form 608- and Form 312-related information collection requirements adopted by the Federal Communications Commission (Commission or FCC) in the March 2024 Report and Order related to supplemental coverage from space ... Show Full Article WASHINGTON, Dec. 6 -- The Federal Communications Commission's Wireless Telecommunications Bureau issued the following public notice (GN Docket No. 23-65; IB Docket No. 22-271) on Dec. 5, 2024: * * * By this Public Notice, the Wireless Telecommunications Bureau and Space Bureau (collectively, the Bureaus) announce that the U.S. Office of Management and Budget (OMB) has approved the Form 608- and Form 312-related information collection requirements adopted by the Federal Communications Commission (Commission or FCC) in the March 2024 Report and Order related to supplemental coverage from space(SCS)./1
The SCS Report and Order adopted a leasing framework and established new part 1 rules that require spectrum lessees to supply certain information when filing FCC Form 608 (Form 608)./2 Because of this rule change, Form 608 has been revised to include a "Yes" or "No" question where a party can indicate whether they are filing the lease application form for the purpose of providing SCS. If the lease application is for SCS, the party will be directed to submit attachments related to SCS to comply with the requirements of new section 1.9047(d)(2).
The SCS Report and Order also established application requirements which satellite operators must meet in order to receive a license to provide SCS. In addition to a comprehensive proposal for the prospective SCS system on FCC Form 312 (Form 312), which has remained unchanged, satellite operators must submit a certification pursuant to new section 25.125(b)(1), a list of file and identification numbers associated with the relevant SCS lease(s), application(s), and FCC Form 601(s), and a brief description of the coverage areas that will be served pursuant to new section 25.125(b)(2)./3 All SCS earth stations that will be used for the provision of SCS must meet the equipment authorization requirements prior to commencing SCS operations using those SCS earth stations pursuant to new section 25.125(c)./4
Because these rule sections include new information collection requirements under the Paperwork Reduction Act, their effectiveness was delayed indefinitely pending OMB review./5 OMB approved the SCS information collection requirements for Form 312 on October 16, 2024, and for Form 608 on October 30, 2024. On December 2 and 4, 2024, the Office of the Federal Register published notices announcing both OMB approvals./6 Accordingly, sections 1.9047(d)(2), 25.125(b)(1)-(2), and 25.125(c) of the Commission's rules are now in effect.
In this Public Notice, the Bureaus provide guidance on compliance with the following information collection requirements:
Completing Form 608
Under section 1.9047(d) of the Commission's rules, a licensee may enter into a spectrum manager or de facto transfer leasing or subleasing arrangement with a spectrum lessee in only the bands identified in section 2.106(d)(33)(i) for the purpose of meeting the part 25 SCS Entry Criteria./7 A licensee seeking to engage in spectrum leasing for the purpose of providing SCS may do so under the following parameters: (i) a single licensee that holds all co-channel licenses on the relevant band in a geographically independent area (GIA) may enter into a leasing arrangement with one or more satellite operators; (ii) if there are multiple co-channel licensees that collectively hold all co-channel licenses in a particular band throughout one of six GIAs, the licensees may enter into spectrum leasing arrangements only under one of the following conditions: (A) one licensee holding a license in the GIA must enter into an individual spectrum leasing arrangement with each of the other co-channel licensees in that GIA, and the licensee may then enter into a leasing arrangement with one satellite operator; or (B) one satellite operator may enter into individual leasing arrangements with each of the relevant co-channel licensees that together hold all co-channel licenses on the relevant band in the GIA./8
The spectrum lessee or sublessee seeking to engage in spectrum leasing for the purpose of providing SCS must complete and file Form 608 in the Commission's Universal Licensing System (ULS), and the Commission has revised this form to incorporate a new question for parties to indicate whether the form is for SCS purposes. New Item 6 on Form 608 states, "For Leases only, indicate whether or not the lease application is being filed for the purpose of providing Supplemental Coverage from Space (SCS). Enter 'Y' if this application is being filed for the purpose of providing SCS. Otherwise, enter 'N.'" A party is required to answer this question before proceeding. When a party indicates that the form is being filed for the purpose of providing SCS, the party must attach documents as required by section 1.9047(d)(2) of the Commission's rules./9 The lessee and lessor should adequately describe the leasing arrangement in their attachment and, per section 1.9047(d)(2), must include:
(1) a certification that the parties are entering into the leasing arrangement for the purpose of fulfilling the part 25 Entry Criteria;
(2) a description of which method, single or multiple terrestrial licensee, the parties are utilizing to meet the part 25 Entry Criteria; and
(3) if the parties are utilizing the multiple terrestrial licensee method,/10 the parties must:
(A) describe the nature of the leasing arrangement(s); and
(B) demonstrate how the entirety of the GIA is covered by the leasing arrangement(s).
After uploading an attachment that addresses each of these requirements, the party should proceed with filling out the remainder of Form 608 and file when complete.
Completing Form 312
Satellite operators seeking a space station authorization to provide SCS must either request modification of a current non-geostationary orbit (NGSO) or geostationary orbit (GSO) license or grant of U.S. market access under part 25, or seek a new NGSO or GSO license or grant of U.S. market access under part 25, and must meet the requirements established in section 25.125. In addition to a comprehensive proposal for the prospective SCS system on Form 312, which has remained unchanged, satellite operators must submit additional filings pursuant to section 25.125(b)(1)-(2) and (c).
First, as part of a part 25 application, satellite operators must certify that:
(1) A lease notification(s) or application(s), pursuant to section 1.9047 of the Commission's rules, where a single terrestrial wireless licensee holds or multiple co-channel licensees collectively hold all co-channel licenses within the relevant GIA in the bands identified in section 2.106(d)(33)(i) of the Commission's rules, or as it pertains to FirstNet, an agreement, is on file with the Commission;/11
(2) The current space station licensee under this part or grantee of market access for NGSO or GSO satellite operation under part 25 seeks modification of authority to provide SCS in the same geographic areas covered in the relevant GIA, or the applicant for a space station license under this part or grant of market access for NGSO or GSO satellite operation under part 25 seeks to provide SCS in the same geographic areas covered in the relevant GIA;/12 and
(3) SCS earth stations, as defined in section 25.103 of the Commission's rules, will qualify as "licensed by rule" earth stations under section 25.115(q)./13
Second, as a part of a part 25 application to provide SCS, satellite operators must include a list of the file and identification numbers associated with the relevant leasing notification(s), application(s), and FCC Form 601(s), with a brief description of the coverage areas that will be served, domestically and internationally./14
Third, each SCS earth station used to provide SCS under part 25.125 must meet the equipment authorization requirements under section 25.125(e) and all equipment authorization requirements for all intended uses of the device pursuant to the procedures specified in part 2 and the requirements of at least one of part 22, 24, or 27 of the Commission's rules./15
People with Disabilities
To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice).
Contact Information
For further information, please contact Christine Parola, Attorney Advisor, Mobility Division, Wireless Telecommunications Bureau at (202) 418-7851 or Christine.Parola@fcc.gov or Stephanie Neville, Attorney Advisor, Satellite Programs and Policy Division, Space Bureau, at (202) 418-1671 or Stephanie.Neville@fcc.gov.
Privacy Act Statement
Authority. Statutory authority for these information collections is contained in 47 U.S.C. Sec.Sec. 1, 4(i), 157, 301, 303, 307, 308, 309, and 310 of the Communications Act of 1934, as amended.
Purpose. In 2024, the Commission adopted new part 1 and part 25 rules to establish the process to provide SCS. The part 1 rules obligate lessees or sublessees to provide specific information in Form 608 pertaining to SCS when filing for the purpose of providing SCS. The Commission adopted this measure to allow staff to more accurately track leasing arrangements related to the provision of SCS, monitor and enforce the entry criteria that SCS providers must satisfy, and ensure that prospective providers of SCS will operate in compliance with the applicable regulatory framework. Applicants seeking a leasing arrangement for the purpose of providing SCS must complete and file Form 608 consistent with the instructions in this Public Notice and the Commission's rules. The part 25 rules require satellite operators to provide information on its Form 312 specific to its SCS operations. Applicants seeking to provide SCS must complete and file Form 312 consistent with the instructions in this Public Notice and the Commission's rules.
Routine Uses. The FCC may release information provided in the Form 608 and/or Form 312 when necessary and appropriate under 5 U.S.C. Sec. 552a(b) of the Privacy Act to: the public as under FCC regulations requiring public disclosure of the information contained in our records; to third parties, including individuals and businesses in the communications industry and public safety, FCC vendors and their contractors, and to other federal agencies or state, local, U.S. territorial, and Tribal government entities to administer, support, participate in, or receive information related to, FCC programs and activities, or to ensure compliance with the confidentiality and other rules regarding information sharing in the FCC's programs and activities; to other federal agencies or to other administrative or adjudicative bodies before which the FCC is authorized to appear; to federal, state, local, Tribal, international, or multinational law enforcement when FCC becomes aware of an indication of a violation or potential violation of a civil or criminal statute, law, regulation, or order; to federal agencies, non-federal entities, their employees, and agents for the purpose of detecting and preventing fraud, waste, and abuse in federal programs; to non-federal personnel, including contractors, grantees, and volunteers who have been engaged to assist the FCC in the performance of a contract service, grant, cooperative agreement, or other activity related to this system of records and who need to have access to the records in order to perform their activity; and to appropriate agencies, entities, and persons when the FCC suspects or has confirmation that there has been a breach of information related to this system.
A complete list of the routine uses can be found in the systems of records notice associated with these collections: (1) FCC/WTB-1, Wireless Services Licensing Records, and (2) FCC/IB-1, International Bureau Filing System, posted at https://www.fcc.gov/managing-director/privacy-transparency/privacyact-information.
Disclosure. This information collection is mandatory for applicants filing Form 608 and/or Form 312 for the purpose of providing SCS.
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Original text plus footnotes here: https://docs.fcc.gov/public/attachments/DA-24-1223A1.pdf
Commissioner Johnson Announces Agenda for CFTC Market Risk Advisory Committee Meeting on Dec. 10
WASHINGTON, Dec. 6 -- The Commodity Futures Trading Commission issued the following enforcement news release:CFTC Commissioner Kristin N. Johnson, sponsor of the Market Risk Advisory Committee, today released the agenda for its public meeting on Tuesday, Dec. 10, from 9:30 a.m. to 12:30 p.m. (ET) at the CFTC's D.C. headquarters.
"This meeting invites MRAC members and the broader financial services community to consider several critical issues at the center of market integrity and market infrastructure--artificial intelligence and cyber resilience; cyber threats to market infrastructure; the ... Show Full Article WASHINGTON, Dec. 6 -- The Commodity Futures Trading Commission issued the following enforcement news release: CFTC Commissioner Kristin N. Johnson, sponsor of the Market Risk Advisory Committee, today released the agenda for its public meeting on Tuesday, Dec. 10, from 9:30 a.m. to 12:30 p.m. (ET) at the CFTC's D.C. headquarters. "This meeting invites MRAC members and the broader financial services community to consider several critical issues at the center of market integrity and market infrastructure--artificial intelligence and cyber resilience; cyber threats to market infrastructure; therole of critical third-party service providers; treasury markets; and financial stability concerns arising from climate-related market risks," Commissioner Johnson noted.
At the meeting, following a general discussion on the current state of Treasury markets, the MRAC Market Structure Subcommittee will introduce effective risk management practices the Commission should consider for adoption related to the Treasury cash-futures basis trade. The Central Counterparty (CCP) Risk & Governance Subcommittee will introduce recommendations on the importance of CCP cyber resilience and share recommendations that address the need for a more robust regulatory framework as relates to CCPs' relationship with critical third parties as well as the use of Legal Entity Identifiers, or equivalent identifiers.
"This final MRAC meeting of the year reflects the Committee's exceptional work to develop effective policy solutions designed to address many critical risk management questions facing derivatives markets," said Commissioner Johnson.
In addition, the MRAC Climate-Related Market Risk and Future of Finance Subcommittees will also discuss current topics and developments in the areas of climate-related risk and innovative and emerging technologies affecting the derivatives and related financial markets, respectively.
"MRAC serves as an invaluable resource to the CFTC, and we look forward to continuing to provide a forum to identify and evaluate pressing issues facing futures and derivatives markets, and to offer insights and recommendations to enhance the integrity of these markets," Commissioner Johnson continued.
A formal agenda for this meeting is available here.
(in person/virtual)
CFTC Headquarters (Conference Center)
Three Lafayette Center
1155 21st Street N.W.
D.C.
*Virtual instructions below
Tuesday, December 10, 2024
9:30 a.m. 12:30 p.m. (ET)
Members of the public may access a live feed by phone. Participants should be prepared to provide their first name, last name, and affiliation, if applicable. Materials presented at the meeting, if any, will be made available on CFTC.gov.
833 435 1820 U.S.
833 568 8864 U.S.
+1 669 254 5252 U.S. (San Jose)
+1 646 828 7666 U.S. (New York)
+1 646 964 1167 U.S. (US Spanish Line)
+1 415 449 4000 U.S. (U.S. Spanish Line)
+1 551 285 1373 U.S. (New Jersey)
+1 669 216 1590 U.S. (San Jose)
International Numbers
161 098 2116
876025
Members of the public may also view a live webcast of the meeting at CFTC.gov.
Members of the public may submit public comments in connection with the meeting, identified by "Market Risk Advisory Committee," by . Follow the instructions for submitting public comments through the Comments Online process. If you are unable to submit comments online, contact Danielle Abada (dabada@cftc.gov) to discuss alternate means of submitting your comments. Statements submitted in connection with the committee meeting will be made available to the public, including publication on CFTC.gov. The meeting agenda may change to accommodate other MRAC priorities. For agenda updates and more information about this advisory committee, including its members, visit MRAC.
The MRAC advises the Commission on matters relating to evolving market structures and movement of risk across clearinghouses, exchanges, intermediaries, market makers and end-users. It examines systemic issues that threaten the stability of the derivatives markets and other financial markets, and makes recommendations on how to improve market structure and mitigate risk.
There are five active advisory committees the CFTC oversees. They were created to provide advice and recommendations to the Commission on a variety of regulatory and market issues that affect the integrity and competitiveness of U.S. markets. These committees facilitate communication between the Commission and market participants, other regulators, and academics. The views, opinions, and information expressed by the advisory committees are solely those of the respective advisory committee and do not necessarily reflect the views of the Commission, its staff, or the U.S. government.
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Original text here: https://www.cftc.gov/PressRoom/PressReleases/9014-24
CFTC Chairman Behnam Issues Statement on Staff Advisory Related to Use of Artificial Intelligence by CFTC-Registered Entities, Registrants
WASHINGTON, Dec. 6 -- The Commodity Futures Trading Commission issued the following statement on Dec. 5, 2024, by Chairman Rostin Behnam on the staff advisory related to the use of artificial intelligence by CFTC-registered entities and registrants:* * *
Today's staff advisory on the use of artificial intelligence by CFTC registered entities and registrants is the product of months long action by the staff AI task force[1] that I created to engage with market participants, AI technology providers, domestic and international regulators, and other stakeholders to understand existing and potential ... Show Full Article WASHINGTON, Dec. 6 -- The Commodity Futures Trading Commission issued the following statement on Dec. 5, 2024, by Chairman Rostin Behnam on the staff advisory related to the use of artificial intelligence by CFTC-registered entities and registrants: * * * Today's staff advisory on the use of artificial intelligence by CFTC registered entities and registrants is the product of months long action by the staff AI task force[1] that I created to engage with market participants, AI technology providers, domestic and international regulators, and other stakeholders to understand existing and potentialAI uses cases and risks in the derivatives markets. The advisory is also informed by public comment on staff's Request for Comment on the Use of Artificial Intelligence in CFTC-Regulated Markets.[2]
Given the dynamic nature of artificial intelligence and the growing integration of AI in derivatives markets, the advisory is a measured first step to engage with the marketplace and ensure ongoing compliance with the Commodity Exchange Act and the CFTC's regulations. The advisory is emblematic of the CFTC's technology-neutral approach, which balances market integrity with responsible innovation in the derivatives markets. As firms may thread AI into the fabric of nearly every aspect of their operations, staff intends to monitor for any risks from AI that may merit policy or regulatory consideration. Staff encourages a continued dialogue with all stakeholders about the risks and benefits of AI use cases in the derivatives markets.
The advisory complements the internal transformation underway at the agency to build a forward-looking AI culture. Since becoming Chairman, the CFTC hired its first Chief Artificial Intelligence Officer[3] to implement the agency's first enterprise-wide analytics and AI strategy to upskill staff and leverage data to optimize the agency's limited resources to better monitor risk, surveil for market integrity, examine for compliance, and enforce to deter unlawful trading behavior in our markets. This strategy aims to identify the highest return-on-investment projects for the agency to execute its mission. Our progress to date demonstrates a thorough and purposeful trajectory that is equally responsive and forward-looking in consideration of available technologies.
I greatly appreciate the work of staff in the Division of Data, Division of Clearing and Risk, Division of Market Oversight, the Market Participants Division, and the Office of the General Counsel on today's staff advisory. I also greatly appreciate all of the effort underway in the Division of Data and input from the CFTC's data end users across the agency to drive our internal enhanced data analytics and AI transformation.
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Footnotes:
[1] Rostin Behnam, Chairman, Keynote of Chairman Rostin Behnam at the 2023 U.S. Treasury Market Conference (Nov. 16, 2023), Keynote of Chairman Rostin Behnam at the 2023 U.S. Treasury Market Conference | CFTC.
[2] Press Release Number 8853-24, CFTC, CFTC Staff Releases Request for Comment on the Use of Artificial Intelligence in CFTC-Regulated Markets (Jan. 25, 2024) CFTC Staff Releases Request for Comment on the Use of Artificial Intelligence in CFTC-Regulated Markets | CFTC
[3] Press Release Number 8903-24, CFTC, Chairman Behnam Designates Ted Kaouk as the CFTC's First Chief Artificial Intelligence Officer (May 1, 2024), Chairman Behnam Designates Ted Kaouk as the CFTC's First Chief Artificial Intelligence Officer | CFTC.
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Original text here: https://www.cftc.gov/PressRoom/SpeechesTestimony/behnamstatement120524