Morning Bell

• SEC seeks feedback over fiduciary plan
  The Securities and Exchange Commission has requested information from the public and the financial services industry pertaining to possible changes to brokers' fiduciary standards. The SEC is seeking information about the benefits and costs of different fiduciary mandates. "Gathering further data is the appropriate next step forward," said Ira Hammerman, SIFMA's general counsel. Read SIFMA's statement on the SEC's request for information. Reuters (3/1), AdvisorOne (3/1)     

Industry News

• Banks express concerns about consequences of regulations
  A Citigroup securities filing says a Dodd-Frank Act provision forcing overseas branches to comply with U.S. derivatives rules might cost the bank customers. Clients "have expressed an unwillingness to continue to deal with overseas branches of U.S. banks if the rules would subject them to these requirements," according to Citigroup. Meanwhile, Goldman Sachs says ring-fencing subsidiaries would force the bank to hold more capital. Bloomberg (3/1)

• Goldman continued to rein in risk last year
  Goldman Sachs Group's risk levels last year were the lowest they have been since 2005, and it saw no days with trading losses of $75 million or more. Goldman did, however, see the number of days with trading gains of at least $100 million decrease from 54 to 41. Reuters (3/1)     

• Nasdaq undertakes loss-making trades to boost volume
  Nasdaq OMX Group is executing some trades at a loss, issuing rebates higher than the execution price, to boost transaction volume. Financial Times (tiered subscription model) (3/3)     

• Volume and profit of high-frequency trading trend downward
  Average daily volume on U.S. equity markets was 6.45 billion shares in 2012, compared with 9.75 billion in 2009, says Rosenblatt Securities, an agency broker monitoring off-exchange trading. High-frequency trading saw related declines, including in profit, the firm says. Traders Magazine Online (3/1)     

• Commentary: Sequester doesn't faze munis
  Columnist Michael Aneiro writes that despite sequestration and Michigan's takeover of Detroit, the municipal bond market remains strong. The market has been able to anticipate these problems and adjust to the changing climate, Aneiro writes. Barron's (special access for readers of SIFMA SmartBrief) (3/2)     

• Commentary: Economic data continue to surprise
  Jim O'Neill, chairman of Goldman Sachs Asset Management, offers his take on what the Italian election, British gross domestic product growth and Polish optimism mean for the future of the eurozone. O'Neill also examines U.S. and Japanese fiscal policy, and the health of the Chinese and Latin American economies. Barron's (special access for readers of SIFMA SmartBrief) (3/1)     

Washington Roundup

• QE3 is going smoothly, Fed's Potter says
  The Federal Reserve's third round of quantitative easing hasn't disrupted the markets, said Simon Potter of the Federal Reserve Bank of New York. "So far, there seems to be little evidence that the current pace of purchases is straining the market's ability to deliver securities to us," Potter said. Reuters (3/1)     

• Congress works to avert March 27 government shutdown
  Congressional leaders said they were optimistic a deal could be reached to avert a government shutdown when its funding authorization expires March 27. House Speaker John Boehner, R-Ohio, said he was "hopeful that the House and Senate will be able to work through this." There were no signs lawmakers will make any efforts to modify or undo across-the-board spending cuts that took effect Friday. The Washington Post (3/3), Los Angeles Times (tiered subscription model)/Politics Now blog (3/3), Politico (Washington, D.C.) (3/4)     

• Commentary: Sequestration is a good start
  Columnist Gene Epstein writes that the sequester that began last week is a good start to shrinking U.S. government spending. Despite what critics think, the budget cuts will not necessarily hobble U.S. economic growth, Epstein writes. Barron's (special access for readers of SIFMA SmartBrief) (3/2)     

Hot Topics

Top five news stories selected by SIFMA SmartBrief readers in the past week.

• SEC outlines 2013 priorities for examiners (InvestmentNews (free registration))

• Regulators might delay Volcker rule further (Reuters)

• SEC updates FSOC on money-fund rules (Bloomberg)

• Analysis: Broker case shows FINRA's wide-ranging power (Reuters)

• Wells Fargo CEO Stumpf says financial industry is recovering (OurFinancialFuture.com)

• Results based on number of times each story was clicked by readers.

SIFMA News

• SIFMA Events -- Marching Forward
  Regardless of your area of expertise, SIFMA has upcoming events in March for every financial services professional. This month, SIFMA partners with GFAO to host Municipal Swaps -- Understanding the New World of Regulation to explore the impact of new swaps rules on your clients and business. SIFMA's Compliance & Legal Society Annual Seminar features more than 65 dynamic and informative panels with leading industry experts, discussing the latest regulatory trends. And SIFMA's Internal Auditors Society will host an IT Training Seminar, where participants will get the latest IT solutions and can receive 7.5 CPE Credits.     

• Latest SIFMA Research: U.S. Research Quarterly and U.S. Foreign Activity
  SIFMA Research released its U.S. Research Quarterly, Q4 2012 containing brief commentary and statistics on the U.S. capital markets. Total securities issuance rose in the fourth quarter of 2012, and increased 16.5% from 2011 to 2012. Gains by dollar amount were concentrated in mortgage-related and corporate issuance. In addition, SIFMA Research issued its U.S. Foreign Activity Report, 2012 Q4, which includes data on purchases and sales of U.S. securities by foreign investors and U.S. purchases and sales of foreign securities. Quarter over quarter, gross U.S. transactions in foreign securities increased 12% and gross foreign transactions in U.S. securities decreased 5%.     

• Register for SIFMA/GFOA: Municipal Swaps -- Understanding the New World of Regulation

• SIFMA Bookstore: The premier resource for financial industry publications

SmartQuote

The man who insists upon seeing with perfect clearness before he decides, never decides. Accept life, and you must accept regret." --Henri Frédéric Amiel, Swiss philosopher, poet and critic