Title VII of the Dodd-Frank Act

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.

CFTC Proposed Extension of the Effective Date for Swap Regulation

On October 18, the CFTC proposed to amend a final order issued on July 14 granting temporary exemptive relief from certain provisions of the Commodity Exchange Act that would have taken effect on July 16. The proposed order would extend such exemptive relief from December 31 to July 16, 2012. The original order grants relief from: (i) provisions added or amended by Title VII of the Dodd-Frank Act that reference one or more terms regarding entities or instruments that Title VII requires to be further defined and (ii) provisions that may apply to certain agreements, contracts, and transactions in exempt or excluded commodities as a result of the repeal of various CEA exemptions and exclusions. CFTC Fact Sheet.

SEC Proposed Rules for Registration of Swap Dealers and Participants

On October 12, the SEC proposed rules, pursuant to Title VII of the Dodd-Frank Act, setting out the process security-based swap dealers and major security-based swap participants must follow to register with the SEC. Comments must be submitted within 60 days after publication in the Federal Register. SEC Release. SEC Proposed Rule.