Featured Product

    SEC Corrections for Rule on Capital and Margin Requirements for Swaps

    October 15, 2019

    SEC published corrections to certain sections of the final rule on capital and margin requirements for security-based swap dealers and major security-based swap participants, 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. The final rule was published in the Federal Register on August 22, 2019 and became effective on October 21, 2019.

    The rule on capital and margin requirements for swaps addresses the following key areas:

    • It establishes minimum capital requirements for security-based swap dealers and major security-based swap participants, for which there is no prudential regulator (non-bank security-based swap dealers and major security-based swap participants). This also increases the minimum net capital requirements for broker-dealers that use internal models to compute net capital (ANC broker-dealers). In addition, it establishes capital requirements tailored to security-based swaps and swaps for broker-dealers that are not registered as an security-based swap dealer or major security-based swap participant to the extent they trade these instruments.
    • It establishes margin requirements for non-bank security-based swap dealers and major security-based swap participants with respect to non-cleared security-based swaps.
    • It establishes segregation requirements for security-based swap dealers and stand-alone broker-dealers for cleared and non-cleared security-based swaps.
    • It amends the existing cross-border rule of SEC to provide a means to request substituted compliance with respect to the capital and margin requirements for foreign security-based swap dealers and major security-based swap participants and provide guidance on how SEC will evaluate requests for substituted compliance.

     

    Related Links

    Effective Date: October 21, 2019

    Keywords: Americas, US, Banking, Securities, Capital Requirements, Dodd-Frank Act, Security-Based Swaps, Margin Requirements, Segregation Requirements, Reporting, Swap Dealers, Swap Participants, Cross-Border Treatment, SEC

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8201