Key takeaways:

• The Second Circuit in City of Pontiac Policemen’s and Firemen’s Retirement System v. UBS AG held that the antifraud provisions of Section 10(b) of the Exchange Act do not apply to purchases of foreign securities on a foreign exchange, even where those securities are also listed on a United States exchange.
• This closely watched decision represents a logical yet important extension of the Supreme Court’s holding in Morrison v. National Australia Bank, Ltd., 561 U.S. 247, 130 S. Ct. 2869 (2010) and eliminates a potential end run around the Morrison ruling.