SEC introduces security-based swap rules 13 August 2015Washington DC Reporter: Stephanie Palmer
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The US Securities and Exchange Commission (SEC) has adopted new registration rules applying to security-based swap dealers and major security-based swap participants, in line with Title VII of the Dodd Frank Act.
The new rules intend to provide a more efficient process for registering with the SEC, and represent a significant milestone towards the implementation for Title VII, which creates a framework for regulatory authority over security-based swaps.
Under the new rules, registered security-based swap dealers and major security-based swap participants will have to provide an extensive set of information, and keep it up to date.
Senior officers will also have to make certifications on their policies and procedures relating to compliance with federal securities laws at the time of registration.
The SEC also proposed a rule allowing security-based swap dealers and major security based swap participants to apply to continue involving people subject to statutory disqualification in effecting transactions, if their involvement is in the public interest.
Chair of the SEC Mary Jo White, said: “Today’s rules provide the commission with the fundamental tool to supervise the business operations of dealers who occupy a critical role in the security-based swap market.”
She added: “These rules mark an important new phase in our implementation of a regulatory regime that protects investors and enhances the integrity of this market.”
The new rules will be effective 60 days after they’re published in the federal register.
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