Thursday, January 28, 2010Last Update: 6:40 PM PT

     WASHINGTON (CN) - Certain hooks on helicopter hoists could fail during rescue operations, causing the rescued passenger to fall, according to the Federal Aviation Administration and a European safety agency. The FAA is requiring that helicopter operators switch out the unsafe hooks before performing up to 200 hoist lifts.
     Rescue hoist operators had reported surface irregularities and discontinuities in hooks in D-Lok Hook Assemblies made by Lifesaving Systems Corporation that were made of cast material instead of forged material. This change in manufacturing was unapproved, according to European Aviation Safety Agency airworthiness information sent to the FAA. The FAA has noted that with the design change, the hooks are not approved for use in aircraft operating in the United States.
     The part that must be changed out is from lot numbers 208 and 1108 of D-Lok Hooks assembly part number 410-A and 410-F. D-Loks are used on Goodrich and Breeze-Eastern rescue hoist assemblies, which, in turn, are used by Eurocopter and Sikorsky helicopters, among others.

     WASHINGTON (CN) - The Securities and Exchange Commission plans to require securities brokers and dealers who provide their customers with access to electronic trading to implement risk management procedures. The procedures would be to insure that broker-dealers properly manage their customer's trades.
      Broker-dealer customers may have access to electronic markets through "direct market access" or "sponsored access" arrangements, using the broker-dealer's market participant identifier. With "direct market access," the customer's orders flow through the broker-dealer's systems before passing into the markets. In "sponsored access" arrangements the customer's orders flow directly into the markets without first passing through the broker-dealer's systems. In either case, the broker-dealer is responsible for all trading activity that occurs under its market participant identifier.
      The commission is concerned that these arrangements do not provide sufficient protection against illegal activity, accidental trades and breaches of credit or capital limits, and that these risks are a threat to the stability of securities markets.
     The new rule proposed by the commission would require broker-dealers to adopt and record procedures that would limit the financial exposure of the broker or dealer from a customer's trade, and that would ensure compliance with all regulatory requirements related to market access.
     Under the new rule, the required controls and procedures must prevent the entry of orders that exceed appropriate pre-set credit or capital thresholds, that fail to comply with any regulatory requirements that must be satisfied on a pre-order entry basis or that the broker-dealer or customer is restricted from trading.
     In addition, the policies must restrict market access technology and systems to authorized persons, and assure that appropriate surveillance personnel receive immediate post-trade execution reports.
     The SEC is seeking public input on the proposed rule.

     WASHINGTON (CN) - The Rural Utilities Service proposes to amend the requirements established for Emergency Restoration Plans, currently mandated for all borrowers, to include compliance with the requirements established by the Federal Emergency Management Agency for public assistance grant eligibility in the event of a declared disaster.
     This amendment is to ensure that RUS borrowers maintain their eligibility for financial aid from FEMA in the event they incur costs for disaster related system repair and restoration by including FEMA requirements in their Emergency Restoration Plans.
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