SEC Proposes to Improve Cross-Border Application of SBS Requirements

The proposals are intended to improve the regulatory framework by pragmatically addressing implementation issues and efficiency concerns and, in some cases, further harmonizing the regulatory regime governing SBS administered by SEC with the regulatory regime governing swaps administered by CFTC. The proposal addresses the four key areas:

• Use of transactions that have been “arranged, negotiated, or executed” by personnel located in the United States as a trigger for regulating SBS and market participants
• Requirement that non-U.S. resident security-based swap dealers and major security-based swap participants certify and provide an opinion of counsel that SEC can access their books and records and conduct onsite inspections and examinations
• Cross-border application of statutory disqualification provisions
• Questionnaires or employment applications that SBS dealers and major security-based swap participants must maintain with regard to their foreign-associated persons

Related Link: Federal Register Notice

Comment Due Date: July 23, 2019

Keywords: Americas, US, Banking, Securities, Security-Based Swaps, Cross Border, Swaps, CFTC, SEC