SEC News Digest

ENFORCEMENT PROCEEDINGS

SEC Files Settled Insider Trading Charges Against Former SemGroup, LP Executive

On Oct. 23, 2009, the Securities and Exchange Commission filed a civil action in the United States District Court for the Northern District of Oklahoma, alleging that Don N. Spaugy, the former Vice President of Financial Services at SemGroup, LP (SemGroup), engaged in insider trading in the securities of SemGroup Energy Partners, LP (SGLP). Spaugy has consented, without admitting or denying the allegations in the complaint, to a permanent injunction against future violations of the anti-fraud provisions of the Securities Exchange Act of 1934, and to pay disgorgement, prejudgment interest and penalties totaling $138,226.

At the time of Spaugy's trading, SemGroup was SGLP's parent company and its largest source of revenue. According to the Commission's complaint, between late May 2008 and the morning of July 15, 2008, and in the course of his employment at SemGroup, Spaugy learned that SemGroup was in a liquidity crisis. The complaint further alleges that from July 15 and 16, 2008, while in possession of this material, non-public information, Spaugy sold 4,500 SGLP units, which were then traded on Nasdaq, at an average price of $23.28 per unit. On July 17, SGLP publicly announced that SemGroup was experiencing liquidity issues and considering bankruptcy, causing the price of its units to drop well below Spaugy's average sale price. By secretly trading on nonpublic information, Spaugy breached a duty of trust and confidence he owed to SemGroup and avoided losses of $67,424. [SEC v. Don N. Spaugy, Civ. Action No. 09-CV-687-TCK-FHM (United States District Court for the Northern District of Oklahoma)] (LR-21260)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by the International Securities Exchange relating to customer fees for crossing orders (SR-ISE-2009-77) 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 October 19. (Rel. 34-60861)

A proposed rule change (SR-CBOE-2009-076) filed by the Chicago Board Options Exchange relating to the Penny Pilot Program 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 October 19. (Rel. 34-60864)

A proposed rule change filed by the International Securities Exchange to extend the pilot program to expose All-Or-None orders for an additional one month (SR-ISE-2009-81) 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 October 19. (Rel. 34-60866)

Accelerated Approval of Proposed Rule Change

The Commission noticed and granted accelerated approval to a proposed rule change (SR-NASDAQ-2009-088) submitted by The NASDAQ Stock Market pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 to modify fees for members using the NASDAQ Market Center. Publication is expected in the Federal Register during the week of October 19. (Rel. 34-60862)

Approval of Proposed Rule Changes

The Commission approved a proposed rule change filed by NASDAQ OMX BX (SR-BX-2009-055) to retroactively correct an error in Rule 7018. Publication is expected in the Federal Register during the week of October 19. (Rel. 34-60863)

The Commission approved a proposed rule change submitted by the New York Stock Exchange (SR-NYSE-2009-83) amending its initial listing fees for operating companies. Publication is expected in the Federal Register during the week of October 19. (Rel. 34-60868)

The Commission has approved a proposed rule change (SR-OCC-2009-14) filed by The Options Clearing Corporation under Section 19(b)(1) of the Exchange Act to clear options based on index-linked securities. Publication is expected in the Federal Register during the week of October 19. (Rel. 34-60872)

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http://www.sec.gov/news/digest/2009/dig102609.htm