In This Issue:

*SEC/CORPORATE

..SEC Chairman Issues Statement on GAAP-IFRS Convergence Project

*BROKER DEALER

..SEC Approves Amendments to Trade Reporting Requirements for Restricted Equity Securities and Revisions to OTC Equity Security Definition

*PRIVATE INVESTMENT FUNDS

..Carried Interest Legislation Passes House

*LITIGATION

..District Court Denies Motion to Dismiss in Options Backdating Action

..Claims Concerning Food Packaging Allowed to Proceed

*BANKING

..Unlawful Internet Gambling Enforcement Act of 2006 Examination Procedures

*UK DEVELOPMENTS

..FSA Fines and Bans Commodity Broker

..FSA Insider Dealing Prosecution Fails

*EU DEVELOPMENTS

..CESR Publishes European Short Selling Technical Details