SEC Charges N.Y.-Based Penny Stock Promoter With Fraud
The Securities and Exchange Commission today charged an upstate New York-based penny stock promoter and his affiliated website with fraud for failing to disclose that he was paid by certain issuers to promote their stock while simultaneously liquidating millions of his own shares for profits of at least $2.95 million.
The SEC alleges that Christopher Wheeler of Victor, N.Y., received compensation at various times in 2007 and 2008 to promote several thinly-traded penny stocks on his website, OTCStockExchange.com. Wheeler's website claimed to "have compiled a long list of successful stock picks" and to afford investors the opportunity to "make a fortune."
The SEC alleges that after receiving millions of shares in undisclosed compensation from the issuers, Wheeler featured the issuers' stock on OTCStockExchange.com, recommended that investors purchase the securities, and posted lofty price predictions for the stock without any reasonable basis for those projections. Wheeler's and OTCStockExchange.com's promotional efforts often resulted in dramatic, but temporary, increases in the volume of shares traded and the price of the issuers' securities. Once the prices were pumped in this manner, Wheeler simultaneously dumped shares from his personal brokerage account onto the market.
"Wheeler and OTCStockExchange.com concealed from investors that Wheeler was paid to hype the very stocks that he was unloading from his own account," said George S. Canellos, Director of the SEC's New York Regional Office. "The securities laws require stock promoters to disclose their compensation so that investors can make informed decisions about the credibility of the information they are being provided."
According to the SEC's complaint filed in the U.S. District Court for the Southern District of New York, Wheeler profited from his undisclosed sales of the securities of Infinity Medical Group, Inc., Solei Systems, Inc., Cannon Exploration Inc., and China Jiangsu Golden Horse Steel Ball Inc. (which now operates as Santana Mining, Inc.). Wheeler caused at least $450,000 of the fraudulent proceeds that he received to be transferred to North Coast Advisors, LLC, an entity that Wheeler controls. North Coast Advisors LLC has been named as a relief defendant in the SEC's complaint.
The SEC's complaint seeks a final judgment permanently enjoining Wheeler and OTCStockExchange.com from future violations of the federal securities laws, and an order permanently barring Wheeler from participating in any offering of penny stock, requiring the defendants to pay financial penalties, and requiring the defendants and North Coast to disgorge all ill-gotten gains plus prejudgment interest.
The SEC's case was investigated by Ken C. Joseph and Christopher M. Castano. The SEC's litigation effort will be led by Preethi Krishnamurthy.
The SEC acknowledges the assistance of the U.S. Attorney's Office for the Western District of New York, the Ontario Securities Commission, and the Royal Canadian Mounted Police.
For more information about this enforcement action, contact:
Ken C. Joseph
(Press Rel. 2011-12)
Following is a schedule of Commission meetings, which will be conducted under provisions of the Government in the Sunshine Act. Meetings will be scheduled according to the requirements of agenda items under consideration.
Open meetings will be held in the Auditorium, Room L-002 at the Commission's headquarters building, 100 F Street, N.E., Washington, D.C. Visitors are welcome at all open meetings, insofar as space is available. Persons wishing to photograph or videotape Commission meetings must obtain permission in advance from the Secretary of the Commission. Persons wishing to tape record a Commission meeting should notify the Secretary's office 48 hours in advance of the meeting.
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Open Meeting - Thursday, January 20, 2011 - 10:00 a.m.
The subject matter of the Open Meeting will be:
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.
In the Matter of James J. Caprio
On Jan. 13, 2011, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions (Order) against James J. Caprio. The Order finds that on Jan. 3, 2011 a final judgment was entered against Caprio in SEC v. William Betta, Jr., et al., (Civil Action Number 9:09-cv-80803-KAM) (S.D. Fla.), permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Based on the above, the Order bars Caprio from association with any broker, dealer, or investment adviser, with the right to reapply after ten years. Caprio consented to the issuance of the Order without admitting or denying any of the findings in the Order, except he admitted the entry of the injunction. (Rel. 34-63714; IA-3138; File No. 3-14189)
Delinquent Filer's Stock Registration Revoked
The registration of the registered securities of Brokat Technologies Aktiengesellschaft has been revoked. The company had repeatedly failed to file required annual and quarterly reports with the Securities and Exchange Commission. Thus, it violated a crucial provision of the federal securities laws that requires public corporations to publicly disclose current, accurate financial information so that investors may make informed decisions. The revocation was ordered in an administrative proceeding before an administrative law judge. (Rel. 34-63715; File No. 3-13900)
Commission Bars Don Warner Reinhard From Association With Any Broker, Dealer, or Investment Adviser
The Commission has barred Don Warner Reinhard from association with any broker, dealer, or investment adviser. Reinhard was the former owner and president of Magnolia Capital Advisors, Inc., a registered investment adviser, and was formerly associated with Paragon Financial Group, Inc., a registered broker-dealer. The Commission's action was based on Reinhard's having been enjoined from violating the antifraud provisions of the federal securities laws and on his criminal conviction for making false statements on a loan application, a tax return and bankruptcy filings, as well as concealing assets from the bankruptcy trustee. The Commission concluded that the public interest requires that Reinhard be barred. In reaching this determination, the Commission noted that by his repeated acts of false filings and dishonest conduct over several years and his refusal to appreciate the wrongfulness of his misconduct, Reinhard has demonstrated his unfitness for employment in the securities industry. (Rels. 34-63720; IA-3139; File No. 3 13280)
In the Matter of Evelyn Litwok
On January 14, the Commission issued an Order Instituting Administrative Proceedings pursuant to Section 203(f) of the Investment Advisers Act of 1940 and Notice of Hearing (Order) against Evelyn Litwok (Litwok) based upon the entry of a Judgment of Conviction entered against her in the United States District Court for the Eastern District of New York (US v. Evelyn Litwok, CR 02-00427(S-1)-01(LDW)).
In the Order, the Division of Enforcement alleges that on Feb. 26, 2009, a federal jury convicted Litwok of one count of mail fraud in violation of Title 18 United States Code, Sections 1341 and 1342, and three counts of tax evasion in violation of Title 26 United States Code, Section 7201 and that the resulting Judgment of Conviction was entered against her on May 11, 2010 in the United States District Court for the Eastern District of New York. The Division further alleges that the misconduct occurred during the period in which Litwok was associated with an investment adviser.
A hearing will be scheduled before an Administrative Law Judge to determine whether the allegations contained in the Order are true, and to provide the Respondent an opportunity to dispute these allegations, and to determine what, if any, remedial action is appropriate and in the public interest.
The Order requires the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rel. IA-3140; File No. 3-14190)
In the Matters of BNY Mellon Securities LLC and Mark Shaw
On Jan. 14, 2011, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions against BNY Mellon Securities LLC (Mellon Securities). The Commission also issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, and Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order against Mark Shaw, former institutional order desk manager for Mellon Securities.
According to the Order against Mellon Securities, from November 1999 through March 2008, Mellon Securities failed reasonably to supervise the institutional order desk manager and traders under his supervision, and the order desk manager failed to meet his duty of best execution to certain employee stock purchase plans, employee stock option plans, direct stock purchase and sale plans, and similar plans. The order desk manager used time delays built into systems for executing and reporting agency cross trades on a regional stock exchange to execute purchase and sell orders from the plan customers at stale or inferior prices in cross trades with a favored handful of accounts held by hedge funds or individuals. In many instances, the trade prices were outside of the National Best Bid and Offer at the time of execution. The order desk manager directed traders under his supervision to do the same.
Based on the above, the Order against Mellon Securities finds that Mellon Securities failed reasonably to supervise the order desk manager and traders on its institutional order desk within the meaning of Section 15(b)(4)(E) of the Exchange Act with a view to preventing and detecting violations of Section 17(a) of the Securities Act. The Order censures Mellon Securities and requires it to pay $19,297,016 disgorgement plus prejudgment interest of $3,748,431, and $1,000,000 in civil penalties. Mellon Securities consented to issuance of the Order without admitting or denying any of the findings therein. In determining to accept Mellon Securities' settlement offer, the Commission considered the fact that Mellon Securities self-reported the matter to the staff.
According to the Order against Shaw, Shaw, and traders under his supervision and at his direction, repeatedly deprived the plan customers of best execution of their orders by using the ability to capture and freeze prices to chase better prices for the hedge funds and to execute trades at stale prices more favorable to the hedge funds than the prices prevailing in the market at the time of execution. The Order against Shaw finds that Shaw willfully violated Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; requires Shaw to cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and bars him from association with any broker or dealer. The Order further requires Shaw to pay $195,300 disgorgement plus prejudgment interest of $23,291, and $150,000 in civil penalties. Shaw consented to the issuance of the Order without admitting or denying any of the findings therein. (BNY Mellon Securities LLC - 34-63724; File No. 3-14191; Mark Shaw - Rels. 33-9174; 34-63725; File No. 3-14192)
SEC Files Action Against CytoCore, Inc., CytoCore's CEO, and the Company's Former Chairman for Trading and Compensation-Related Violations
On Jan. 13, 2011, the Securities and Exchange Commission filed a civil injunctive action against CytoCore, Inc., Daniel J. Burns, the former Chairman of CytoCore's Board of Directors, and Robert F. McCullough, Jr., CytoCore's Chief Executive Officer and Chief Financial Officer, alleging that they engaged in violative conduct relating to trading in CytoCore stock and Burns' compensation.
According to the complaint, from 2003 to 2008, Burns employed fraudulent schemes to profit from CytoCore stock transactions and received hundreds of thousands of dollars in improper compensation and benefits from CytoCore as an unregistered broker. According to the complaint, Burns' fraudulent trading schemes included: (1) causing CytoCore to issue a press release touting Burns' investment in CytoCore stock and then secretly selling shares after the announcement; (2) insider trading ahead by selling ahead of CytoCore's announcement of a private stock offering; and (3) secretly selling CytoCore stock by first transferring shares to a friend.
The complaint further alleges that, from 2003 to 2008, Burns improperly received transaction-based compensation as an unregistered broker soliciting investors in CytoCore stock. CytoCore and McCullough allegedly aided and abetted Burns by engaging him to act as a broker for the Company. The complaint also alleges that Burns submitted false claims for commissions purportedly earned by a friend for soliciting CytoCore investors, and his friend, in turn, remitted those commission payments to Burns. Burns also allegedly submitted to CytoCore false claims for expense reimbursements relating to his investor solicitations.
The complaint further alleges that Burns and McCullough violated insider reporting requirements by failing to report all of their CytoCore stock transactions, and caused CytoCore to make misstatements in its proxy statements relating to Burns' and McCullough's trading and stock holdings. CytoCore and McCullough settled the charges against them without admitting or denying the allegations of the complaint. CytoCore has consented to injunctive relief and certain undertakings, and McCullough has consented to injunctive relief and a $100,000 civil penalty. As part of the settlement, McCullough has also consented to a twelve-month suspension from association with a broker-dealer or investment adviser. [SEC v. v. CytoCore, Inc., et al, United States District Court for the Northern District of Illinois, Civil Action No. 1:11-cv-00246 (N.D. Ill.)] (LR-21811)
SEC Sues Investment Adviser, Broker-Dealer and Their Principal, Warren D. Nadel
On Jan. 13, 2011, the Commission charged Warren D. Nadel, Warren D. Nadel & Co. (WDNC) and Registered Investment Advisers, LLC (RIA) with defrauding their investment advisory clients. The Commission alleges that from 2007 through 2009, these Defendants fraudulently induced clients to invest tens of millions of dollars in a purported liquid, cash management investment strategy, in order to receive over $8 million in commissions and fees from 2007 through 2009. Defendants deliberately overstated the value and liquidity of client holdings in the Strategy, by misrepresenting and concealing critical information about the way they were supposedly executing it. Although Defendants informed clients repeatedly that they were executing open-market transactions on the clients' behalf, the vast majority of transactions, however, were not executed on the open market. Most simply consisted of trades between advisory client accounts controlled by Defendants at inflated prices made up by Nadel himself. Defendants thus created the false impression that there was a liquid market for these securities and that the market prices for the securities were consistent with the inflated values that Defendants reported to their clients.
The complaint alleges that Defendants Nadel, WDNC and RIA violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder; Defendant WDNC violated and Defendant Nadel aided and abetted violations of 17(a) of the Exchange Act and Rules 10b-10 and 17a-4 thereunder; Defendants Nadel and RIA violated Sections 206(1), (2) and (3) and 207 of the Investment Advisers Act of 1940 (Advisers Act); Defendant RIA violated and Defendant Nadel aided and abetted violations of Sections 204 of the Advisers Act and Rule 204(2)-(a)(3) thereunder.
The complaint seeks a final judgment permanently enjoining the defendants from future violations of the federal securities laws and ordering them to pay civil penalties and disgorgement of ill-gotten gains plus prejudgment interest. [SEC v. Warren D, Nadel, Warren D. Nadel & Co. and Registered Investment Advisers, LLC, Civil Action No. 11-CV-0215 (DRH) (E.D.N.Y.)] (LR-21812)
SEC Charges "Bob" Hancher and His Associates With Misappropriation and Two Other Fraudulent Schemes
On Jan. 13, 2011, the Securities and Exchange Commission filed a civil injunctive action in the District Court for the Northern District of Iowa charging Lowell Gene "Bob" Hancher, Commerce Street Venture Group, Inc., Edward T. Whelan and Grace Holdings, Inc. with engaging in three separate fraudulent schemes in violation of the antifraud and other provisions of the federal securities laws.
The Commission's complaint alleges that between April 2005 and November 2007, Hancher, working through his company Commerce Street, raised more than $1.8 million from at least 60 investors in connection with a fraudulent stock offering for Scott Contracting, Inc., a Colorado construction company. Hancher told different investors at least four inconsistent lies about how their money would be invested and promised them outsized returns of 50% after Scott Contracting became a public company. In reality, Hancher and Commerce Street simply misappropriated the money they raised for Scott Contracting to pay personal and business expenses.
In a separate scheme between December 2007 and February 2008, the complaint alleges that Hancher directed Whelan and others to place at least 18 manipulative matched orders for more than 60,000 shares of LMWW Holdings, Inc., a company controlled by Hancher, in order to prop up its stock price and increase its trading volume. According to the complaint, Whelan personally placed at least two of these matched orders in a brokerage account in the name of his company, Grace Holdings, Inc.
Finally, the Commission's complaint alleges that in a third scheme between September 2008 and January 2010, Hancher abused his position as a director and audit committee member at Cycle Country Accessories Corporation, an Iowa manufacturer of accessories for all-terrain vehicles and golf carts, to convince the company to give the Defendants $620,000 under the guise of taking the company private through a stock buyback. Instead of using the funds as promised, however, the complaint alleges that Hancher and Whelan purchased just a small amount of Cycle Country stock and misappropriated $507,500 and $16,187, respectively. To cover-up the misappropriations, Hancher created fake documents and lied to Cycle Country's external auditor. The misappropriations and Hancher's subsequent lies, in turn, caused Cycle Country to incorporate the false information into its books and records and public filings with the Commission.
Without admitting or denying the Commission's allegations, the Defendants have agreed to settle this matter as follows:
[SEC v. Lowell Gene "Bob" Hancher, Commerce Street Venture Group, Inc., Edward T. Whelan and Grace Holdings, Inc., 5:11-cv-04005 (N.D. Iowa)] (LR-21813)
SEC Charges Father and Son in Financial Fraud at Sports Memorabilia Company
The Securities and Exchange Commission today charged Joseph D. Racliffe and his son Michael J. Radcliffe, both of Elka Park, New York, with operating a financial fraud at Image Innovations Holdings, Inc. (Image), a public company that dealt in sports memorabilia. The Commission also charged Joseph Radcliffe with illegal insider trading.
The Commission's complaint, which was filed in the United States District Court for the District of Columbia, alleges that Michael Radcliffe was a Director of Image and the Chief Operating Officer of its operating subsidiary, and he signed the company's financial reports. Joseph Radcliffe, who held himself out as a "consultant" for the company, actually controlled the operations of the company. According to the Commission's complaint, in 2004 and 2005, Joseph and Michael Radcliffe engaged in a scheme in which they created fictitious sales of company merchandise, which were recorded in the company books and records as revenue. The Radcliffes used false invoices and other documentation to disguise the fact that the sales were phony. The Commission further alleges that the revenue reported from the fictitious sales was included in the company's financial reports, which were disseminated to the public and filed with the Commission. In 2004, Image reported about $6.1 million in revenue. For the first quarter of 2005, Image reported about $464,502 in revenue. About 92 percent of that reported revenue in 2004 and 2005 was fabricated by Joseph and Michael Radcliffe. In addition, Joseph Radcliffe sold shares of the Company at prices inflated by the fraud while in possession of material, nonpublic information regarding the Company's true financial performance and without registering the sales as required by the securities laws. The Radcliffes obtained a total of at least $965,000 from the financial fraud and illegal stock sales. The fraudulent scheme eventually came to light when a newly-hired company officer questioned the company's revenue figures.
Joseph and Michael Radcliffe agreed to settle the Commission's charges without admitting or denying the allegations against them. The proposed settlements are subject to the court's approval Joseph Radcliffe agreed to pay $955,000 in disgorgement, $299,541 in prejudgment interest, and $175,000 in civil penalty. He also consented to a final judgment enjoining him from violating Sections 5(a) and (c) and 17(a) of the Securities Act of 1933 (Securities Act); Section 10(b) of the Securities Exchange Act (Exchange Act) and Rule 10b-5 thereunder; and, as a "controlling person" under Exchange Act Section 20(a), from violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder.
Michael Radcliffe agreed to pay $10,000 in disgorgement, $3,060 in prejudgment interest, and $75,000 in civil penalty. He also consented to a final judgment enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. [SEC v. Joseph D. Radcliffe and Michael J. Radcliffe, Civil Action No. 1:11-cv-00091 (RBW) (D. D.C.)] (LR-21814; AAE Rel. 3231)
SEC Charges Former MediCor CEO, Chairman and COO With Concealing True Source of Company's Funding
The Securities and Exchange Commission today charged Theodore Robert Maloney (Maloney), the former chief executive officer of MediCor, Ltd. (MediCor), with fraud and other misconduct for concealing the true and precarious source of MediCor's funding from investors and the company's auditor. The Commission simultaneously filed related settled civil actions against Donald K. McGhan, MediCor's founder and former Chairman (Don McGhan), and Jimmy J. McGhan, the company's former chief operating officer (Jim McGhan).
The SEC complaints, filed in the Nevada District Court, allege that from 2004 through 2006, MediCor filed false and misleading annual reports, quarterly reports and proxy statements that falsely stated that the company was substantially funded by Don McGhan or one of his affiliates, when in fact a significant source of MediCor's funding was money illegally transferred from Southwest Exchange Corp. (Southwest). Southwest was a private company that held deposits for taxpayers seeking to defer capital gains taxes on like-kind exchanges of property. According to the SEC's complaint, Maloney and Don McGhan concealed the illegal transfer of Southwest funds by creating a paper trail designed to hide the true source of MediCor's financing; Maloney and the McGhans also concealed information regarding the true source of MediCor's funding from MediCor's auditor. Maloney was the person primarily responsible for preparing MediCor's misleading public filings; Maloney, Don McGhan and Jim McGhan each signed the filings. The complaint further alleges that by the end of 2006, Don McGhan, with Maloney's help and Jim McGhan's knowledge, had transferred over $54 million out of Southwest for MediCor's benefit. Southwest collapsed in January 2007, owing approximately $97 million to its clients. MediCor declared bankruptcy in June 2007.
The SEC is charging Maloney with violating Sections 10(b), 13(b)(5) and 14(a) of the Securities Exchange Act of 1934 (Exchange Act), and Exchange Act Rules 10b-5, 13b2-2 and 14a-9, and with aiding and abetting MediCor's violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1 and 13-13. The SEC seeks a permanent injunction, civil penalty and a permanent officer and director bar against Maloney.
Don McGhan and Jim McGhan each has agreed to settle to charges of violating Sections 10(b) and 14(a) of the Exchange Act and Exchange Act Rules 10b-5 and 14a-9, and with aiding and abetting MediCor's violations of Sections 13(a) of the Exchange Act and Exchange Act Rules 12b-20 and 13a-1. Don McGhan has agreed to consent to a permanent injunction and officer and director bar. Jim McGhan has agreed to consent to a permanent injunction and a 5-year officer and director bar. [SEC v. Theodore R. Maloney; Securities and Exchange Commission vs. Donald K. McGhan and Jimmy J. McGhan, Civil No. 2:11-CV-74; Civil No. 2:11-CV-75 (USDC Nevada)] (LR-21816)
INVESTMENT COMPANY ACT RELEASES
Orders Of Deregistration Under the Investment Company Act
Orders have been issued under Section 8(f) of the Investment Company Act declaring that each of the following has ceased to be an investment company:
Approval of Proposed Rule Change
A proposed rule change (SR-Phlx-2010-163), filed by NASDAQ OMX PHLX relating to obvious errors respecting complex trades has been approved pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of January 17. (Rel. 34-63692)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by Financial Industry Regulatory Authority to modify FINRA/Nasdaq trade reporting securities transaction credit (SR-FINRA-2010-068) 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 January 17. (Rel. 34-63695)
A proposed rule change filed by NASDAQ OMX PHLX relating to option expiration months and series of options open for trading on the Exchange (SR-Phlx-2011-04) 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 January 17. (Rel. 34-63700)
A proposed rule change (SR-NASDAQ-2011-006), filed by The NASDAQ Stock Market relating to routing fees for the NASDAQ Options Market 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 January 17. (Rel. 34-63705)
A proposed rule change (SR-CBOE-2011-004), filed by Chicago Board Options Exchange to amend its fees schedule and circular regarding Trading Permit Holder Application and Other Related Fees 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 January 17. (Rel. 34-63706)
A proposed rule change filed by NYSE Arca US to establish a $5 Strike Price Program (SR-NYSEArca-2011-02) 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 January 17. (Rel. 34-63707)
A proposed rule change filed by NYSE Amex to establish a $5 Strike Price Program (SR-NYSEAmex-2011-03) 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 January 17. (Rel. 34-63708)
A proposed rule change filed by the Financial Industry Regulatory Authority (SR-FINRA-2011-001) to provide additional time to report certain reportable TRACE transactions and waive certain transaction reporting fees 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 January 17. (Rel. 34-63709)
A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2011-01) relating to a fee cap on dividend, merger and short stock interest strategies 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 January 17. (Rel. 34-63712)
Approval of Accelerated Delivery of Supplement to the Options Disclosure Document
The Commission granted approval to the accelerated delivery of a supplement to the options disclosure document, submitted by The Options Clearing Corporation (SR-ODD-2011-01) pursuant to Rule 9b-1 under the Securities Exchange Act of 1934, reflecting certain changes to disclosure regarding credit default options in, and making certain technical amendments to, the June 2007 Supplement to the options disclosure document. Publication is expected in the Federal Register during the week of January 17. (Rel. 34-63711)
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