• OCC Bulletin on Agencies' Proposed Diversity Standards.

On November 7th, the Office of the Comptroller of the Currency ("OCC") issued a bulletin on the Proposed Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies. The proposed standards are intended to promote transparency and awareness of the diversity policies and practices of regulated entities and to provide guidance to the regulated entities and the public for assessing these diversity policies and practices. OCC Bulletin.

• OCC Issues Updated "Insider Activities" Booklet.

On November 6th, the OCC issued the "Insider Activities" booklet of the Comptroller's Handbook. The updated booklet provides guidance for examiners and bankers on how national banks and federal savings associations may legally and prudently engage in transactions with insiders. The booklet explains how to implement risk management processes that provide for the appropriate control and monitoring of insider activities. It also explains how examiners review and assess insider activities during the supervisory process. OCC Bulletin.

• OCC Issues "Qualified Thrift Lender" Booklet.

On November 6th, the OCC issued the "Qualified Thrift Lender" booklet, which is new to the Comptroller's Handbook. The booklet rescinds section 270, "Qualified Thrift Lending Test," issued June 2002 as part of the Office of Thrift Supervision's Examination Handbook. OCC Bulletin.

• FDIC Proposes Restrictions on the Sale of Assets of Covered Financial Company.

On November 6th, the Federal Deposit Insurance Corporation ("FDIC") published for comment a proposed rule that would implement the Dodd-Frank Act's prohibition against an individual or entity that has or may have contributed to the failure of a "covered financial company" from buying a covered financial company's assets from the FDIC. The proposal establishes a self-certification process that is a prerequisite to the purchase of assets of a covered financial company from the FDIC. Comments should be submitted on or before January 6, 2014. 78 FR 66661.

• Resolution Authorities Seek Uniform Derivatives Contracts Language.

On November 5th, the FDIC, Bank of England, German Federal Financial Supervisory Authority, and Swiss Financial Market Supervisory Authority jointly wrote a letter encouraging the International Swaps and Derivatives Association to adopt language in derivatives contracts to delay the early termination of those instruments in the event of the resolution of a global systemically important financial institution. Joint Press Release.

• Reserve Requirements of Depository Institutions.

On November 5th, the Federal Reserve Board ("Board") amended Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2014. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a zero percent reserve requirement in 2014 at $13.3 million (from $12.4 million in 2013). The Regulation D amendments also set the amount of net transaction accounts at each depository institution (over the reserve requirement exemption amount) that is subject to a three percent reserve requirement in 2014 at $89.0 million (from $79.5 million in 2013). The Board also announced changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports. The amendments are effective December 5, 2013. 78 FR 66249. See also Federal Reserve Board Press Release.

• Stress Test Scenarios.

On November 1st, the OCC released the economic and financial market scenarios that will be used in the next round of stress tests for large financial institutions. The OCC also issued the final "Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios." The guidance outlines the consultative processes that the OCC will use to gather information on material vulnerabilities or salient risks and to coordinate with the Board and the FDIC to develop the scenarios each year. OCC Press Release. The Board published its supervisory stress test scenarios for the 2014 capital planning and stress testing program, as well as instructions to firms with timelines for submissions. The program includes the "Comprehensive Capital Analysis and Review" of 30 bank holding companies with $50 billion or more of total consolidated assets. Federal Reserve Board Press Release (Nov. 1, 2013). On November 7th, the Board issued a final policy statement describing the processes it will use to develop scenarios for future capital planning and stress testing exercises. It describes the characteristics of the stress test scenarios and explains the procedures for formulating the scenarios. Although the policy statement is not effective until January 1, 2014, the macroeconomic scenarios released on November 1 for the 2014 stress testing exercise are consistent with the policy statement. The Board also issued revised macroeconomic scenarios for the 2014 capital planning and stress testing program to correct a minor computational error for the projections of the five-year Treasury yield in the baseline and adverse scenarios. The severely adverse scenario was unchanged. Federal Reserve Board Press Release (Nov. 7, 2013).

• OCC Workshops.

The OCC will host two workshops in Phoenix, Arizona on December 3-4, 2013 for directors of national community banks and federal savings associations. The "Compliance Risk: What Directors Need to Know" and "Credit Risk: A Director's Focus" workshops are designed exclusively for directors of institutions supervised by the OCC. The compliance risk workshop focuses on major compliance risks and consumer protection regulations, as well as critical elements of an effective compliance risk management program. The credit risk workshop focuses on the loan portfolio and the roles of the board and management, as well as current industry trends and news. Both workshops are taught by seasoned OCC supervision staff. OCC Press Release.

• Homeownership Counseling Interpretive Rule.

On November 8th, the Consumer Financial Protection Bureau ("CFPB") published the data instructions for lenders to use in complying with the requirement under the High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act Final Rule to provide a homeownership counseling list using data made available by the Bureau or Department of Housing and Urban Development. The rule is effective January 10, 2014.

• CFPB Acts on Payday Lenders.

On November 6th, the CFPB announced it is accepting complaints from borrowers encountering problems with payday loans. CFPB Press Release.

• CFPB Acts on Debt Collectors.

On November 6th, the CFPB issued an Advance Notice of Proposed Rulemaking to collect information on a number of issues, including the accuracy of information used by debt collectors, how to ensure consumers know their rights, and the communication tactics collectors employ to recover debts. The Bureau also announced it will begin adding consumer complaints about debt collections to its public Consumer Complaint Database. CFPB Press Release.

• SEC Roundtable on Proxy Advisors.

The Securities and Exchange Commission ("SEC") will host a public roundtable on December 5, 2013 to discuss the use of proxy advisory firm services by institutional investors and investment advisers. SEC Press Release.

• Profile.

The November 11th issue of the New Yorker includes a profile of SEC Chairman Mary Jo White. Profile.

• Chairman White Discusses Technology Company Disclosure.

On November 6th, SEC Chairman Mary Jo White, highlighting the work of SEC staff, noted in particular the Division of Corporation Finance's recent interest in the metrics used by technology companies in their annual reports. In remarks before the Practicing Law Institute, White summarized the staff's efforts to clarify what those metrics mean. White Remarks.

• Commissioner Gallagher Calls for New Marketplace.

On November 6th, SEC Commissioner Daniel Gallagher discussed market structure and in particular, the need to establish a distinct marketplace for the securities of small and emerging companies. Gallagher Remarks.

• Funding Portals.

On November 4th, the New York Times reported that funding portals created under the Jumpstart Our Business Startups Act's crowdfunding provisions will be able to charge commissions. Commissions.

• Comment Sought on CME's Proposed Amendment of Rule 538.

On November 6th, the Commodity Futures Trading Commission ("CFTC") requested comment on an amended request from the Chicago Mercantile Exchange Inc., the Board of Trade of the City of Chicago, Inc., New York Mercantile Exchange, Inc., Commodity Exchange, Inc., and the Board of Trade of Kansas City, Missouri, Inc. for approval of amendments to existing Rule 538 of the Exchanges' rulebooks and the issuance of CME Group Market Regulation Advisory Notice RA1311-5. The Exchanges are seeking approval to eliminate the use of transitory Exchange for Related Positions transactions ("EFRPs") - except for transitory EFRPs in the Exchanges' FX markets - wherein the execution of an EFRP is contingent upon the execution of another EFRP or related position transaction between the parties and where the transactions result in the offset of the related positions without the incurrence of market risk in the context of the related position transactions. Comments should be submitted on or before December 6, 2013. CFTC Press Release.

• Position Limits for Derivatives.

On November 5th, the CFTC published proposed position limits for derivatives in 28 core physical commodity contracts and their "economically equivalent" futures, options, and swaps. In connection with establishing these limits, the proposal updates some definitions; revises the exemptions from speculative position limits, including for bona fide hedging; and extends and updates reporting requirements for persons claiming exemption. The proposal also includes appendices to revised Part 150 that would (i) provide guidance on risk management exemptions for commodity derivative contracts in excluded commodities permitted under the proposed definition of bona fide hedging position; (ii) list core referenced futures contracts and commodities that would be substantially the same as a commodity underlying a core referenced futures contract for purposes of the proposed definition of basis contract; (iii) describe and analyze fourteen fact patterns that would satisfy the proposed definition of bona fide hedging position; and (iv) present the proposed speculative position limit levels in tabular form. In addition, the Commission proposes to update certain of its rules, guidance and acceptable practices for compliance with Designated Contract Market core principle 5 and Swap Execution Facility core principle 6 in respect of exchange-set speculative position limits and position accountability levels. Comments should be submitted within 60 days after publication in the Federal Register, which is expected during the week of November 11. Proposed Rules. On November 6th, Reuters discussed CME Group's review of the proposed position limits. CME's data indicates that the proposed limits may not be as onerous as some had feared. Analysis.

• Aggregation of Positions.

On November 5th, the CFTC published proposed modifications to its aggregation rules which address the agency's policy for aggregation under the Commission's position limits regime for futures and option contracts on nine agricultural commodities. Comments should be submitted within 60 days after publication in the Federal Register, which is expected shortly.

• Membership in Registered Futures Association.

On November 5th, the CFTC published proposed amendments that would require all persons registered with the CFTC as introducing brokers, commodity pool operators, and commodity trading advisors become and remain members of at least one registered futures association ("RFA"). Currently, the National Futures Association is the only RFA. Comments should be submitted on or before January 17, 2014.

• Treasury Official Likely Nominee for CFTC Chairmanship.

On November 7th, CNBC reported President Obama will likely nominate Timothy Massad as the next Chairman of the CFTC. Massad currently serves as the assistant secretary for financial stability at the Treasury Department. Nominee.

• Commissioner Announces Departure.

On November 5th, the Washington Post discussed CFTC Commissioner Bart Chilton's announcement that he intends to leave the agency in the near future and what that means for future CFTC rulemaking. Announcement.

• Forex Swaps Relief Extended.

On November 1st, the CFTC's Division of Market Oversight issued a letter extending the relief for foreign exchange swaps provided in CFTC Letter No. 13-55 (amended) (Swap Data Reporting Requirements); CFTC Letter No. 13-56 (Continuation Data Reporting for Uncleared Swaps); and CFTC Letter No. 13-58 (Reporting Relief for Non-Cleared Swaps). The relief is extended, subject to certain terms and conditions, until 12:01 AM (ET) on November 29, 2013. CFTC Press Release.

• Commodity Futures Trading Commission.

November 27, 2013 – Swap Dealers and Major Swap Participants; Clerical or Ministerial Employees. 78 FR 64173.

• Consumer Financial Protection Bureau.

January 10, 2014 – Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z). 78 FR 62993.

• Federal Deposit Insurance Corporation.

January 1, 2014 – Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-Weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule. 78 FR 62417.

• Federal Housing Finance Agency

January 18, 2014 – Appraisals for Higher-Priced Mortgage Loans. 78 FR 10367.

• Federal Reserve System.

January 18, 2014 – Appraisals for Higher-Priced Mortgage Loans. 78 FR 10367.

• National Credit Union Administration.

November 18, 2013 – Federal Credit Union Ownership of Fixed Assets. 78 FR 57250.

• Office of the Comptroller of the Currency.

November 27, 2013 – Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios. 78 FR 64153.

• Department of the Treasury.

January 18, 2014 – Appraisals for Higher-Priced Mortgage Loans. 78 FR 10367.

• Longer Period Designated for Consideration of Complex Order Proposal.

On November 1st, the SEC designated December 20, 2013 as the date by which it will approve, disapprove, or institute disapproval proceedings regarding BOX Options Exchange's proposal to permit Complex Orders participate in the Price Improvement Mechanism. SEC Release No. 34-70797.

• New Trading Permit Holder Requirement Proposed.

On November 5th, the SEC provided notice of Chicago Board Options Exchange's filing of a proposal to add CBSX Rule 50.4A. The proposed rule provides that a CBSX Trading Permit Holder may become or remain a CBSX Trading Permit Holder only if it is a member of a national securities association. All CBSX Trading Permit Holders that are effective as of the approval date of the filing would have six months from the date of approval to become a member of a national securities association. The proposed rule also provides that CBSX will terminate, upon written notice, the Trading Permit Holder status of any CBSX Trading Permit Holder that fails to meet this requirement. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of November 11. SEC Release No. 34-70806.

• Trade Error Rules Approved.

On October 31st, the SEC approved the Chicago Stock Exchange's proposed adoption of standards for the cancellation or adjustment of Bona Fide Error trades, the submission of Error Correction Transactions, and the cancellation or adjustment of stock leg trades of Stock-Option or Stock-Future orders. SEC Release No. 34-70791.

• SEC Approves OTC Options Proposal.

On November 7th, the Financial Industry Regulatory Authority ("FINRA") announced the SEC approved amendments to treat over-the-counter options cleared by The Options Clearing Corporation as conventional options for purposes of FINRA Rule 2360 (Options) and as listed options for purposes of FINRA Rule 4210 (Margin Requirements). Accordingly, OCC cleared OTC options will be considered conventional options for purposes of position limit and reporting requirements and delivery of certain disclosure documents and will be considered listed options for purposes of margin requirements, including maintenance margin requirements and portfolio margin requirements. The amendments are effective immediately. FINRA Regulatory Notice 13-39.

• Electronic Blue Sheets.

On November 1st, FINRA announced that the Intermarket Surveillance Group ("ISG") has extended to May 1, 2014, the effective date for compliance with certain new data elements for Electronic Blue Sheets identified in FINRA Regulatory Notice 13-16. The ISG has also extended the effective date for compliance with certain other data elements to be consistent with the exemptive relief provided by the SEC, which extended the compliance date for certain broker-dealer recordkeeping and reporting requirements under the Large Trader Rule. FINRA Regulatory Notice 13-38.

• Brent Protocol.

On November 8th, the International Swaps and Derivatives Association ("ISDA") published the ISDA 2013 ICE Brent Protocol, which offers market participants an efficient way to amend the terms of certain derivatives transactions to address the impact of the decision by ICE Futures Europe to (i) change expiry dates for ICE Brent futures and options contracts to a month-ahead expiry calendar with respect to March 2016 and later contract months and (ii) require a cash adjustment as a result of such change. The cut-off date for this Protocol is November 22, 2013 (17:00 NY time). ISDA, however, reserves the right to reopen adherence to this Protocol by giving 3 days' prior notice on the ISDA website. ISDA Press Release.

• Erroneous Trades.

On November 7th, NASDAQ reported U.S. options exchanges may unveil a proposed uniform rule on erroneous trades on November 12. Erroneous Trades.

• Clarifications Regarding Qualified Contingent Cross Orders Proposed.

On November 6th, the SEC provided notice of NASDAQ OMX PHLX's filing of proposed amendments to Rules 1064 and 1080 to more specifically address the number and size of counterparties to a Qualified Contingent Cross Order. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of November 11. SEC Release No. 34-70821.

• Retail Liquidity Program Proposed.

On November 6th, the SEC provided notice of NYSE Arca's proposed adoption of a one-year pilot program that would add new Rule 7.44 to establish a Retail Liquidity Program to attract additional retail order flow to the Exchange for NYSE Arca-listed securities and UTP Securities, excluding NYSE-listed (Tape A) securities, while also providing the potential for price improvement to such order flow. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of November 11. SEC Release No. 34-70824.

• Limits on Complex Orders Proposed.

On November 6th, the SEC provided notice of NYSE MKT's and NYSE Arca's individually filed proposed rule changes to adopt commentary to their respective rules that would limit the volume of Complex Orders by a single ATP Holder during the trading day. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of November 11.

• A Conspicuous Absence.

On November 7th, Investment News discussed the Securities Industry and Financial Markets Association's paper regarding the duties owed by broker-dealers to their customers. While SIFMA supports a uniform rule for brokers and investment advisers, the paper conspicuously avoids the term "fiduciary." Duties.

• Senators Seek to Close Stock Option Tax Break.

On November 6th, Reuters quoted Senators Carl Levin and John McCain as calling for the elimination of the corporate stock option tax deduction. Tax Break.

• How Do Directors Prepare for the Worst?

Winston & Strawn will host an eLunch titled "How Do Directors Prepare for the Worst?" on Wednesday, January 15, 2014 at 12:00 — 1:30 p.m. (Central). This is the third in Winston's three-part series, Forum for Financial Institution Directors: 2013 Director Education Series. eLunch.

• Two Topical Issues: 2014 Proxy Season Preparations and Customer Privacy: All You Want to Know But Don’t Get a Chance to Ask!

Winston & Strawn will host an eLunch titled "Two Topical Issues: 2014 Proxy Season Preparations and Customer Privacy: All You Want to Know But Don’t Get a Chance to Ask!" on Monday, December 16, 2013 at 12:00 — 1:30 p.m. (Central). This is the second in Winston's three-part series, Forum for Financial Institution Directors: 2013 Director Education Series. eLunch.

• What Do Regulators Expect from Directors?

Winston & Strawn will host an eLunch titled "What Do Regulators Expect from Directors?" on Friday, November 22, 2013 at 12:00 — 1:30 p.m. (Central). This is the first in Winston's three-part series, Forum for Financial Institution Directors: 2013 Director Education Series. eLunch.

• James Junewicz to Speak at PLI Securities Filings 2013 Seminar.

Winston & Strawn partner James Junewicz will speak at "Securities Filings 2013: Practical Guidance in a Changing Environment," to be held November 14-15, 2013 in Chicago. Speaking Engagement.

• Contact Us.

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