Financial Services Bulletin: Action At The SEC


The SEC Proposes Cross-Board Security-Based Swap Rules

On Wednesday, May 1, 2013, the Securities and Exchange Commission (the "SEC") proposed rules and interpretive guidance for parties to cross-border security-based swap transactions.  The SEC acted pursuant to its authority under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The proposed rules describe which regulatory requirements apply when a transaction occurs partially within and partially outside the U.S.  The proposed rules also explain the obligation of security-based swap dealers, major security-based swap participants, and other entities (such as clearing agencies, execution facilities, and data repositories) to register with the SEC.  Recognizing that market participants may be subject to conflicting or duplicative compliance obligations in the global derivatives market, the proposal also outlines a “substituted compliance” framework.

Read the SEC press release