SEC Backs UBS In 2nd Circ. Over Margin Call Disclosure

Law360, New York (June 6, 2012, 10:50 PM EDT) -- The U.S. Securities and Exchange Commission told the Second Circuit in an amicus brief Tuesday that federal regulations do not require brokers to provide notice before issuing a margin call for additional collateral, supporting the dismissal of a suit brought against UBS Securities LLC.

The Second Circuit invited the SEC to address the application of Rule 10b-16 of the Securities Exchange Act of 1934, which imposes the disclosure obligations of broker-dealers in connection with the extension of margin credit to their customers, in a case appealed...
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