security-based swap dealers

SEC Adopts New Rules Affecting Security-Based Swap Dealers and Major Security-Based Swap Participants

 

On June 21, the Securities and Exchange Commission (SEC) adopted new rules and rule amendments to establish capital, margin and segregation requirements under Title VII of the Dodd-Frank Act. These rules largely aim to increase the risk-mitigation practices of security-based swap dealers and major security-based swap participants. Release.

SEC Adopts Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants

On April 15, 2016, the Securities and Exchange Commission adopted final rules modifying regulations “for security-based swap dealers and major security-based swap participants (security-based swap entities).”  The final rules address conduct and compliance officer issues. Release.

SEC Extension of Comment Period for Rule on Swap Requirements

On January 15, the SEC extended the comment period for its proposed rule to establish capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants.  The original comment deadline of January 22 has been extended to February 22.  SEC Proposed Rule.

SEC Proposed Rule for Security-Based Swap Dealers and Major Security-Based Swap Participants

On October 17, the SEC proposed capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants as required by the Dodd-Frank Act.  The proposal: (i) sets minimum capital requirements; (ii) establishes margin requirements with respect to non-cleared security-based swaps; and (iii) establishes segregation requirements for security-based swap dealers and notification requirements with respect to segregation for security-based swap dealers and major security-based swap participants.  Comments may be submitted for 60 days following publication in the Federal Register.  SEC Release.  SEC Proposed Rule.

SEC Proposal for Security-Based Swap Dealer and Participant Standards

On June 29, pursuant to Title VII of the Dodd-Frank Act, the SEC proposed rules to impose business conduct standards on security-based swap dealers and major swap participants. The proposed rule would: (i) require these swap dealers and participants to communicate in a fair and balanced manner and make certain disclosures; and (ii) impose additional requirements for dealings with special entities such as municipalities, pension plans, and endowments. Comments must be submitted by August 29. SEC Release. Proposed Rule.

Joint Proposed Rule on Swap Margin and Capital Requirements

On April 12, the FDIC, Fed, FCA, FHFA, and OCC issued a notice of proposed rulemaking establishing margin and capital requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants pursuant to Sections 731 and 764 of the Dodd-Frank Act. The proposal adopts a risk-based approach in establishing the minimum amount of margin a covered swap entity must collect from a counterparty and the frequency with which it must calculate and collect such margin. On April 12, the CFTC held an open meeting to discuss and approve a similar proposed rule. The Commissioners observed that significant inconsistencies between the CFTC rule and the rule proposed by the aforementioned agencies would need to be reconciled in future rulemaking actions. FDIC Release. Proposed Rule. CFTC Hearing Link.