Countdown to Crowdfunding: Illinois Intrastate Crowdfunding Portals Expected Soon

Elaine Wyder-HarshmanStartup Tips & Resources


Illinois intrastate crowdfunding is coming soon, offering new fundraising and investment opportunities to Illinois businesses and Illinois investors. Enacted in 2012, Illinois intrastate crowdfunding is just weeks from implementation. The final proposed set of rules, governing internet crowdfunding portals, was issued on Friday, March 18, 2016. The Illinois Secretary of State will be taking applications for registration as an internet portal during the 45-day comment period, which ends May 2. It is expected that Illinois crowdfunding portals will be authorized to do business relatively soon after the comment period ends in May.Read More

NFA: Information Systems Security Programs Due March 1, 2016

Steven BylinaBest Practices, Market Rules & Responsibilities, Operations


The National Futures Association (NFA) held its first NFA Cybersecurity Workshop on February 2, 2016 in Chicago. The workshop consisted of discussion of NFA Cybersecurity Interpretive Notice to Compliance Rules 2-9, 2-36, and 2-49 entitled Information Systems Security Programs (ISSP) and ISSP policy development.

The NFA is requiring CPO’s, CTA’s, IB’s, FCM’s, retail foreign exchange dealers, swap dealers, and major swap participants to have an ISSP in place by March 1, 2016. The ISSP will require member firms to adopt and enforce written policies and procedures to secure customer data. The ISSP should be tailored to their specific business activities and risk.Read More

2112: Our Home and the Cause of M&A Close to Home

Ilya ZlatkinFirm News

Ziliak-Law-and-2112At Ziliak Law we pride ourselves on our roots in the financial services industry and our tenancy within the Chicago Board of Trade. At the same time, since the inception of the firm in May 2013, we’ve branched out to service other industries, including music, film, theatre, and other media-related practice areas. At the core of our involvement in the entertainment law space is our presence at 2112, a Chicagoland creative industries incubator.

Back in March 2015, Forbes ran a great article on the blueprint for 2112. When the incubator opened its doors in July of the same year, Ziliak Law was one of its inaugural tenants. Last week ChicagoInno profiled all of the current members at 2112. Skimming down the list of companies, it’s great to reflect on the significant progress that’s occurred at the incubator in half a year. Some of the current members are clients of ours, and that’s in large part due to our presence there.Read More

The Tip of the Spoofing Iceberg

Diona RogersMarket Rules & Responsibilities


Early in November, after a highly anticipated week-long trail, a jury of twelve found CME futures trader, Michael Coscia, 53, guilty of six counts of commodities fraud and six counts of spoofing in Illinois Federal Court. The outcome of the case serves as a warning to other market participants as this may be only the tip of the iceberg for spoofing prosecutions in the future.Read More

Advisers, Cybersecurity, and Regulation

Matthew TobinMarket Rules & Responsibilities, Operations


Almost daily, headlines are peppered with reports of hackers breaching the cyber defenses of major institutions and governmental bodies, garnering information that could seriously compromise not only the financial well-being of countless individuals but also the financial stability of the nation. Even governmental bodies such as the U.S. Office of Personnel Management are susceptible to unwanted intrusions. [1] If the main custodian of the United States government’s most important personnel information can be hacked, who is not at risk?Read More

Supreme Court’s Key Jurisdictional Question in Manning v. Merrill Lynch Pierce Fenner & Smith Inc.

Matthew TobinCase Studies

Ziliak Law  Associate Matthew Tobin wrote an article for Law360 on the Supreme Court’s key jurisdiction question in Manning. Below is an excerpt; the full article is on Law360’s website, which is behind a paywall.

Law360, New York (September 1, 2015, 10:55 AM ET) — To resolve a long-standing circuit split over the scope of U.S. Securities and Exchange Commission jurisdiction, the U.S. Supreme Court has granted writ of certiorari in Manning v. Merrill Lynch Pierce Fenner & Smith Inc. Merrill contends that federal courts have jurisdiction over the case under Section 27 of the Securities Exchange Act of 1934 (“the Exchange Act”) because Manning’s state-level causes of action allege violations of the SEC’s Regulation SHO.Read More

Another Shot Across the Bow for Proprietary Trading Groups, and By Association, HFTs and Algorithmic Trading Strategies

Michelle ComellaBest Practices, Market Rules & Responsibilities

The SEC published a proposed amendment to Rule 15b9-1 on April 2, 2015 that will impact Proprietary Trading Groups, and by association, HFTs‬ and ‎Algorithmic Trading‬ Strategies. Ziliak Law’s Thomas F. Cashman (Of Counsel) and Michelle M. Comella (Partner) provide insights on the Rule’s history and the potential changes.‬‬‬‬‬‬

Time Running Out to Comment on FINRA’s Plan to Register Algorithmic Trading Strategy Developers

Michelle ComellaMarket Rules & Responsibilities

FINRA issued Regulatory Notice 15-06 through which they announced their proposal to require associated persons of FINRA member firms who are either (i) primarily responsible for the design, development or significant modification of algorithmic trading strategies, or (ii) responsible for supervising such activities to register as Securities Traders. Read more from Ziliak Law Partner Michelle M. Comella. Update: The comment period ended on May 18, 2015.  FINRA published six (6) comment letters, two of which were from law schools, on their website.  There have been no further updates as of September 1, 2015.