SEC News Digest

COMMISSION ANNOUNCEMENTS

SEC Proposes Measures to Improve Regulation of Fund Distribution Fees and Provide Better Disclosure for Investors

The Securities and Exchange Commission today voted unanimously to propose measures aimed to improve the regulation of mutual fund distribution fees and provide better disclosure for investors.

The marketing and selling costs involved with running a mutual fund are commonly referred to as a fund's distribution costs. To cover these costs, the companies that run mutual funds are permitted to charge fees known as 12b-1 fees. These fees are deducted from a mutual fund to compensate securities professionals for sales efforts and services provided to the fund's investors.

12b-1 fees were developed in the late 1970s when funds were losing investor assets faster than they were attracting new assets, and self-distributed funds were emerging in search of ways to pay for necessary marketing expenses. These fees amounted to an aggregate of just a few million dollars in 1980 when they were first permitted, but that total has ballooned as the use of 12b-1 fees has evolved. These fees amounted to $9.5 billion in 2009.

"Despite paying billions of dollars, many investors do not understand what 12b-1 fees are, and it's likely that some don't even know that these fees are being deducted from their funds or who they are ultimately compensating," said SEC Chairman Mary L. Schapiro. "Our proposals would replace rule 12b-1 with new rules designed to enhance clarity, fairness and competition when investors buy mutual funds."

The SEC's proposal would:

• Protect investors by limiting fund sales charges.
• Improve transparency of fees for investors.
• Encourage retail price competition.
• Revise fund director oversight duties.

There will be a 90-day public comment period after the SEC's proposal is published in the Federal Register.

FACT SHEET

The Securities and Exchange Commission today voted to propose a new and more equitable framework governing the way in which mutual funds are marketed and sold to investors. In particular, the proposed changes would replace existing provisions, including Rule 12b-1, that allow mutual funds to use their assets to compensate securities professionals who sell shares of the fund.

Background

As with any business, running a mutual fund involves costs, including the costs of marketing and selling the fund to prospective investors. These marketing and selling costs are commonly referred to as a fund's distribution costs.

To cover these costs, the companies that run mutual funds are permitted to charge fees, known as 12b-1 fees. These fees are deducted from mutual funds to compensate securities professionals for sales efforts and for services provided to the mutual fund investors.

But, many investors are unaware that these fees are being deducted and are unaware who these fees are ultimately compensating. Nor may they realize that the amounts the fund spends for such costs directly reduce the value of the investors' shares of the fund.

Last December, SEC Chairman Mary Schapiro stated, "When it comes to these fees, there is a need for more fundamental change than merely disclosure reforms and a name change. We must critically rethink how 12b-1 fees are used and whether they continue to be appropriate. For example, do they result in investors overpaying for services or paying for distribution services that they may not even know they are supposed to be getting?"

In 2009, these fees amounted to $9.5 billion and exceeded $13 billion in 2007 - compared to just a few million dollars in 1980 when they were first permitted.

Today, the Commission will consider proposing rules to provide a new framework governing how mutual fund companies collect fees to cover the costs of marketing and selling mutual funds.

The proposal would:

Limiting "Ongoing Sales Charges": When an investor buys shares of a mutual fund, there is frequently an accompanying sales charge (or load) that compensates the broker-dealer who helped sell the shares. The charge can be paid up front or over time. Typically, different "classes" of a fund involve different sales charge arrangements.

Front-end sales charge: A "front-end" sales charge is paid up front when the investor buys the shares. The amount of a front-end sales charge is limited by FINRA rules. Such charges cannot exceed 8.5 percent, or a lower limit (down to 6.25 percent) depending on other fees charged by the fund.

Asset-based sales charge: An "asset-based" sales charge is paid over time out of the fund's assets - in other words, out of the fund itself - rather than out of each individual investor's account. Existing rules also limit asset-based sales charges. The current limit on the rate is 0.75 percent per year, but there is no limit on how long a fund can pay these charges if it continues to make significant new sales to investors. As a result, shareholders may pay asset-based charges through the fund for as long as they own the fund.

• The proposal would limit the amount of asset-based sales charges that individual investors pay. In particular, the proposal would restrict these "ongoing sales charges" to the highest fee charged by the fund for shares that have no ongoing sales charge. For example, if one class of the fund charges a 4 percent front-end sales charge, another class could not charge more than 4 percent in total to investors over time. The fund would keep track of how long investors have been paying ongoing sales charges.

Separately, funds could continue to pay 0.25 percent per year out of their assets for distribution as "marketing and service" fees, for expenses such as advertising, sales compensation and services.

Improve Transparency of Fees for Investors

Enhance Disclosure Requirements: Currently fund distribution costs are not well understood by investors, in part because these costs are often referred to obscurely as "12b-1 fees." In addition, fund transaction confirmation statements delivered to investors typically do not include sales charges.

• The proposal would require the fund to identify and more clearly disclose distribution fees. In particular, the fund would have to disclose any "ongoing sales charges" and any "marketing and service fees" in the fund's prospectus, shareholder reports and investor transaction confirmations. Transaction confirmations also would have to describe the total sales charge rate that an investor will have to pay.

Encourage Retail Price Competition

Allow Funds to Sell Shares Through Broker-Dealers Who Establish Their Own Sales Charges: Currently all broker-dealers who sell shares in a fund must sell those shares under terms established by the fund and disclosed in its prospectus. This means that dealers cannot compete with each other by reducing sales charges.

• The proposal would enable funds to sell shares through broker-dealers who determine their own sales compensation, subject to competition in the marketplace. As a result, broker-dealers could establish their own sales charges, tailor them to different levels of shareholder service, and charge shareholders directly, similar to how commissions are charged on securities such as common stock.
   
• The proposal would prevent funds that rely on this exemption from deducting other sales charges from fund assets for that class of shares. This restriction would prevent double-charging.

Revise Fund Director Oversight Duties

Revise Director Duties to Reflect Current Market Practices: Currently, before using fund assets to pay for fund distribution expenses, a fund must adopt a written plan describing the arrangement. The fund's board of directors must initially approve and annually re approve the plan. But the economic realities of long-term distribution arrangements often mean that fund distribution plans are re-approved year after year, with no change.

• The proposed amendments, which would set automatic limits on fund fees and charges, would eliminate the need for fund directors to explicitly approve and re-approve fund distribution financing plans. As a result, fund directors would have more time to devote to other important matters.

Directors would still have responsibility for overseeing ongoing sales charges and marketing and service fees in the same manner that they oversee other fund expenses, subject to their general fiduciary duties.

The proposal would provide a transition period for the new rules, and also would revise confirmation statement requirements regarding callable debt securities.

There will be a 90-day public comment period after publication of the proposal in the Federal Register. (Press Rel. 2010-126)

SEC Approves Disclosure Form Changes to Provide Investors Greater Information About Their Investment Advisers

The Securities and Exchange Commission today voted unanimously to adopt changes to the principal disclosure document that SEC-registered investment advisers must provide to their clients and prospective clients.

Form ADV, Part 2 - commonly referred to as the "brochure" - explains to the investor an investment adviser's qualifications, investment strategies, and business practices.

The brochure in its current format requires advisers to respond to a series of multiple-choice and fill-in-the-blank questions organized in a "check-the-box" format that frequently does not correspond well to an adviser's business. In some cases, the required disclosure may not describe the adviser's business or conflicts in a way that is truly accessible to the investor.

"These changes are designed to provide clients with greater information about the individuals who will provide them with investment advice," said SEC Chairman Mary L. Schapiro. "These amendments will help transform the brochure into a plain English narrative that is well-suited to serve investors' needs and describes the adviser's conflicts, compensation, business activities, and disciplinary history."

The amendments adopted by the SEC will:

• Improve the format and update the requirements of the brochure.
   
• Expand the content to better include details most relevant to the clients of investment advisers.
   
• Require brochure "supplements" to be delivered to new and prospective clients to give resume-like information about the individuals at an investment advisory firm who will provide services to the clients.
   
• Ensure investors have easy access to the brochures as investment advisers are required to file them electronically for posting on the SEC's website.

Many state-registered investment advisers also currently file Form ADV with their regulators. The Commission authorized the staff to delay publication of the revised Form ADV, Part 2 for five business days in order to work with the states to accommodate technical, state-specific changes to the items and instructions of the form. This process would enable publication of Form ADV, Part 2 as a uniform SEC-state form.

The amended rules and forms will be effective 60 days after publication in the Federal Register. Most investment advisers will begin distributing and publicly posting new brochures in the first quarter of 2011.

FACT SHEET

Overview

When individuals consider whether to hire a particular investment adviser, they often have basic questions about the professional who may be advising them. That is why, for 21 years, investment advisers registered with the SEC have been required to provide new and prospective clients with a brochure explaining the adviser's qualifications, investment strategies, and business practices.

Under existing rules, advisers can satisfy this requirement either by providing clients with the portion of the registration form - known as Part 2 of Form ADV - that contains this information, or by creating a separate document that includes the information required by that form.

Currently, Part 2 requires advisers to respond to a series of multiple-choice and fill-in-the-blank questions organized in a "check-the-box" format. Unfortunately, that format frequently does not correspond well to an adviser's business. And, in some cases, the required disclosure may not describe the adviser's business or conflicts in a user-friendly manner.

Today, the Commission is considering adopting amendments to Part 2 of Form ADV and related rules that will substantially improve the quality of the disclosure advisers provide to their clients.

Under the new rules, advisers will have to provide new and prospective clients with narrative brochures that are organized in a consistent, uniform manner and that include plain English disclosures of the adviser's business practices, fees, conflicts of interest, and disciplinary information. Advisory firms also must provide "brochure supplements" to clients containing information about the employees who will provide the advisory services to that client.

The Amendments

• Improved Format and Updating Requirements. Advisers are required to prepare a narrative, plain English, brochure, presented in a consistent, uniform manner that will make it easier for clients to compare different advisers' disclosures. The clear and concise narrative descriptions provided in the brochure will improve the ability of clients and prospective clients to evaluate advisers and to understand conflicts of interest that the firms and their personnel face, the effects of those conflicts on the firms' services, and the steps the adviser takes to address the conflicts.
   
  Advisers must deliver the brochure to a client before or at the time the adviser enters into an advisory contract with the client. In addition, advisers must provide each client an annual summary of material changes to the brochure and either deliver a complete updated brochure or offer to provide the client with the updated brochure.
   
• Expanded Content. The new brochure addresses those topics the Commission believes are most relevant to clients, including:
   
  
  • Advisory business - An investment adviser must describe its advisory business, including the types of advisory services offered, state whether it holds itself out as specializing in a particular type of advisory service, and disclose the amount of client assets that it manages.
     
  • Fees and compensation - An investment adviser must describe how it is compensated for its advisory services, provide a fee schedule, and disclose whether fees are negotiable. The investment adviser must also describe the types of other fees or expenses, such as brokerage fees, custody fees, and fund expenses that clients may pay in connection with the services provided.
     
  • Performance-based fees and side-by-side management - An investment adviser that accepts performance-based fees, or that supervises an individual who accepts such fees, is required to disclose this fact. If the investment adviser also manages accounts that are not charged a performance fee, the adviser must explain the conflicts of interest that arise from the simultaneous management of these accounts and must describe how it addresses those conflicts.
     
  • Methods of analysis, investment strategies, and risk of loss- An investment adviser must describe its methods of analysis and investment strategies and explain that investing in securities involves risk of loss which clients should be prepared to bear. Investment advisers who use a particular method of analysis or strategy or who recommend a particular type of security are required to explain the material risks involved and discuss the risks in detail if those risks are unusual.
     
  • Disciplinary information - An investment adviser is required to disclose in its brochure material facts about any legal or disciplinary event that is material to a client's evaluation of the advisory business or to the integrity of its management personnel. An investment adviser must deliver promptly to clients updated information when there is new disclosure of a disciplinary event or a material change to an existing disciplinary event.
     
  • Code of ethics, participation or interest in client transactions, and personal trading- An investment adviser is required to describe briefly its code of ethics and state that a copy is available upon request. The adviser must also disclose whether it or an affiliate recommends to clients, or buys or sells for client accounts, securities in which the adviser or an affiliate has a material financial interest and, if so, the conflicts of interest associated with that practice. The adviser also must disclose whether it or an affiliate invests (or is allowed to invest) in the same securities that it recommends to clients or in related securities, such as options or other derivatives, and must explain the conflicts involved and how it addresses those conflicts. In addition, an investment adviser that trades in the recommended securities at or around the same time as the client has to explain the specific conflicts inherent in that practice and how it addresses them.
     
  • Brokerage practices - An investment adviser is required to describe the factors considered in selecting or recommending broker-dealers for client transactions and determining the reasonableness of brokers' compensation. Investment advisers also must disclose soft dollar practices (research or other products or services, other than execution, provided by brokers or a third party to the investment adviser in connection with client transactions); client referrals (using client brokerage to compensate brokers for client referrals); directed brokerage (asking or permitting clients to send trades to a specific broker for execution); and trade aggregation (bundling trades to obtain volume discounts on execution costs). Investment advisers must explain how they address the various conflicts of interest associated with these practices.
     
• Supplements. An adviser is required to deliver "brochure supplements" to new and prospective clients providing them with information about the specific individuals who will provide services to the clients. The supplement will contain brief résumé-like disclosure about the educational background, business experience, other business activities, and disciplinary history of the individual, so that the client can assess the person's background and qualifications. It will also include contact information for the person's supervisor in case the client has a concern about the person.
   
• Internet Availability. Advisers are required to electronically file brochures, which will be publicly available on the SEC's website.

The amended rules and forms will be effective 60 days after publication in the Federal Register.

Most investment advisers will begin distributing and publicly posting new brochures in the first quarter of 2011. (Press Rel. 2010-127)

David W. Blass Named SEC Associate General Counsel for Legal Policy

The Securities and Exchange Commission today announced that David W. Blass has been named an Associate General Counsel for Legal Policy in the agency's Office of the General Counsel.

Mr. Blass, who has prior experience both at the SEC and in private practice, will provide legal and policy advice to the Commission on a wide range of matters, with particular emphasis on investment management, trading and markets, and international matters.

Mr. Blass most recently served as Special Counsel in the Asset Management Group at Willkie Farr & Gallaher LLP, where he provided advice to financial institutions, including registered investment companies, investment advisers, hedge fund and private equity fund managers, banks, and broker-dealers.

Mr. Blass previously worked at the SEC from 2003 to 2008, first as a Branch Chief and Special Counsel in the Division of Trading and Markets, and later as an Assistant Director in the Division of Investment Management. He also practiced securities and corporate law at Davis Polk & Wardwell LLP prior to his first stint at the SEC.

"David has distinguished himself for his judgment and strong ability to analyze complex legal matters," said SEC General Counsel David Becker. "His depth of experience at the Commission and in private practice will enable him to make immediate contributions to the work of the Commission and to the Office. I am delighted that he is rejoining the Commission."

Mr. Blass said, "I'm honored to be able to contribute to the Commission's vital efforts to protect investors. I'm excited to have the opportunity to work with the superb lawyers in the Office of the General Counsel as well as the professionals throughout the SEC who dedicate themselves to the agency's mission."

Mr. Blass, 39, was a recipient of the SEC's Law and Policy Award in 2005. He earned his JD from Columbia University, where he was a Harlan Fiske Stone Scholar and Executive Editor of the Columbia Journal of Transnational Law. Mr. Blass earned his BA, magna cum laude, from the University of Alabama, where he was Phi Beta Kappa. (Press Rel. 2010-128)

Commission Meetings

Closed Meeting - Wednesday, July 21, 2010 - 12:30 p.m.

The subject matter of the Closed Meeting on Wednesday, July 21, 2010, was: institution and settlement of injunctive actions.

At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.

ENFORCEMENT PROCEEDINGS

Commission Revokes Registrations of Securities of Image Innovations Holdings, Inc. for Failure to Make Required Periodic Filings

On July 21, 2010, the Commission instituted a settled proceeding pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act) revoking the registration of each class of registered securities of Image Innovations Holdings, Inc. (IMGVQ) for failure to make required periodic filings with the Commission.

Without admitting or denying the findings of the order, except as to jurisdiction, which it admitted, IMGVQ consented to the entry of an Order Instituting Proceedings, Making Findings, and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 finding that it had failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of IMGVQ's securities pursuant to Section 12(j) of the Exchange Act.

Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:

No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .

(Rel. 34-62535; File No. 3-13969)

Commission Revokes Registrations of Securities of Diamond Equities, Inc. for Failure to Make Required Periodic Filings

On July 21, 2010, the Commission instituted a settled proceeding pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act) revoking the registration of each class of registered securities of Diamond Equities, Inc. (DDEQ) for failure to make required periodic filings with the Commission.

Without admitting or denying the findings of the order, except as to jurisdiction, which it admitted, DDEQ consented to the entry of an Order Instituting Proceedings, Making Findings, and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 finding that it had failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of DDEQ's securities pursuant to Section 12(j) of the Exchange Act.

Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:

No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .

(Rel. 34-62536; File No. 3-13970)

Commission Revokes Registrations of Securities of Avalon Capital Holdings, Inc. for Failure to Make Required Periodic Filings

On July 21, 2010, the Commission instituted a settled proceeding pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act) revoking the registration of each class of registered securities of Avalon Capital Holdings, Inc. (AVLC) for failure to make required periodic filings with the Commission.

Without admitting or denying the findings of the order, except as to jurisdiction, which it admitted, AVLC consented to the entry of an Order Instituting Proceedings, Making Findings, and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 finding that it had failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of AVLC's securities pursuant to Section 12(j) of the Exchange Act.

Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:

No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .

(Rel. 34-62537; File No. 3-13971)

In the Matter of Joseph Milanowski

An Administrative Law Judge has issued an Order Making Findings and Imposing Sanction by Default (Default Order) in Administrative Proceeding No. 3-13914, Joseph Milanowski. The Order Instituting Proceedings (OIP) alleged that, on April 14, 2010, the U.S. District Court for the District of Nevada issued a permanent injunction against Milanowski. According to the OIP, the injunction bars Milanowski from future violations of Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.

The Default Order finds the allegations in the OIP to be true. It concludes that, pursuant to Section 15(b) of the Securities Exchange Act of 1934, it is appropriate in the public interest to bar Milanowski from association with any broker or dealer. (Rel. 34-62538; File No. 3-13914)

Final Judgments of Permanent Injunction and Other Relief Entered Against Defendants William B. Blount, Blount Parrish & Co., Inc., and Albert W. Lapierre

The Securities and Exchange Commission announced that on July 14, 2010, the Honorable Abdul K. Kallon, United States District Judge for the Northern District of Alabama, entered Final Consent Judgments of Permanent Injunction and Other Relief against Defendants William B. Blount (Blount), Blount Parrish & Co., Inc. (Blount Parrish), and Albert W. LaPierre (LaPierre). Without admitting or denying the allegations in the Commission's complaint, Blount, Blount Parrish and LaPierre consented to the entry of injunctions against future violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15B(c)(1) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5, and Municipal Securities Rulemaking Board Rules G-17 and G-20. The Final Judgments also dismiss the Commission's claims for disgorgement, prejudgment interest and civil penalties against Blount, Blount Parrish and LaPierre.

The Commission commenced this action by filing its Complaint on April 30, 2008, against Blount, Blount Parrish, LaPierre and the former Birmingham Mayor Larry P. Langford. The Commission's complaint alleged that while Langford served as president of the County Commission of Jefferson County, Alabama, he accepted more than $156,000 in undisclosed cash and benefits over the course of two years from Blount, the chairman of Blount Parrish. According to the complaint, Langford selected Blount Parrish to participate in every Jefferson County municipal bond offering and security-based swap agreement transaction during 2003 and 2004, from which Blount Parrish received over $6.7 million in fees. Moreover, the Commission alleged, Langford and Blount concealed the payment scheme by using their long-time friend, LaPierre, an Alabama registered political lobbyist, as a conduit. [Securities and Exchange Commission v. Larry P. Langford, et al., Case No. CV-08-0761-AKK (N.D. AL)] (LR-21595)

INVESTMENT COMPANY ACT RELEASES

Korea Finance Corporation

An order has been issued on an application filed by Korea Finance Corporation under Section 6(c) of the Investment Company Act granting an exemption from all provisions of the Act in connection with the offer and sale of its debt securities in the United States. (Rel. IC-29343 - July 20)

SELF-REGULATORY ORGANIZATIONS

Approval of Proposed Rule Changes

The Commission approved a proposed rule change (SR-EDGA-2010-02) submitted under Rule 19b-4 of the Securities Exchange Act of 1934 by EDGA Exchange relating to a corporate reorganization in which EDGA will become a wholly-owned subsidiary of Direct Edge, Inc. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62514)

The Commission approved a proposed rule change (SR-EDGX-2010-02) submitted under Rule 19b-4 of the Securities Exchange Act of 1934 by EDGX Exchange relating to a corporate reorganization in which EDGX will become a wholly-owned subsidiary of Direct Edge, Inc. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62515)

The Commission granted approval of a proposed rule change submitted by NYSE Arca (SR-NYSEArca-2010-44) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to the United States Commodity Index Fund. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62527)

The Commission approved a proposed rule change, as modified by Amendment No. 1, by the Financial Industry Regulatory Authority (SR-FINRA-2010-028) to adopt NASD Rule 3210 as FINRA Rule 4320 in the consolidated FINRA rulebook. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62533)

Proposed Rule Change

The Commission noticed a proposed rule change (SR-Phlx-2010-79) submitted by the NASDAQ OMX PHLX pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to the establishment of NASDAQ OMX PSX as a platform for trading NMS stocks. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62519)

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by Chicago Board Options Exchange to extend two pilot programs related to the exchange's automated improvement mechanism until July 18, 2011 (SR-CBOE-2010-067) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62522)

A proposed rule change filed by the NYSE Amex (SR-NYSEAmex-2010-68) temporarily suspending the collection of certain charges in the Complex Matching Engine has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62526)

A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2010-96) relating to trading halts in options during a trading pause in the underlying securities has become immediately effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62530)

A proposed rule change filed by The NASDAQ Stock Market (SR-NASDAQ-2010-087) relating to trading halts in options during a trading pause in the underlying securities has become immediately effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62531)

A proposed rule change filed by NASDAQ OMX PHLX relating to order re-entry (SR-Phlx-2010-95) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 19. (Rel. 34-62534)

SECURITIES ACT REGISTRATIONS

• Latest Securities Act registrations (TXT)

RECENT 8K FILINGS

• Latest 8-K filings (TXT)

http://www.sec.gov/news/digest/2010/dig072110.htm