On July 13 2016, the US Securities and Exchange Commission (SEC) adopted amendments and guidance (Final Rules and Guidance) related to its rules on the regulatory reporting and public dissemination of security-based swaps (SBSs), known as Regulation SBSR. Two key issues addressed by the Final Rules and Guidance that may interest market participants involved in the cross-border SBS market are the compliance date for when SBS reporting begins and the applicability of Regulation SBSR to certain cross-border situations.

With regard to the compliance date, the Final Rules and Guidance make a significant modification to the compliance schedule as proposed that links the reporting compliance date to the compliance date for registration of SBS dealers and major SBS participants. This should alleviate certain compliance challenges in the cross-border context. Concerning the cross-border applicability of Regulation SBSR, the Final Rules and Guidance continue the SEC’s policy of applying Dodd-Frank Act requirements to certain SBS transactions between non-US persons, where such transactions are “arranged, negotiated, or executed” within the US.

Originally published in International Financial Law Review on September 1, 2016.