Featured Product

    SEC Reopens Comment Period for Multiple Proposals on SBSDs and MSBSPs

    October 19, 2018

    SEC reopened comment period and/or requested additional comments on proposals related to various requirements for Security-Based Swap Dealers (SBSDs), Major Security-Based Swap Participants (MSBSPs), and broker-dealers. Comments should be submitted by November 19, 2018.

    SEC is requesting additional comment on the proposed amendment that would establish an additional capital requirement for SBSDs that do not have a prudential regulator. In addition, SEC reopened the comment period and requested additional comment (including potential modifications to proposed rule language) on the proposed amendments and new rules that would: 

    • Establish capital, margin, and segregation requirements for SBSDs and MSBSPs that do not have a prudential regulator
    • Raise minimum net capital requirements and establish liquidity requirements for broker-dealers that are permitted to use internal models when computing net capital (ANC broker-dealers) 
    • Establish the cross-border treatment of security-based swap capital, margin, and segregation requirements

    Earlier, in October 2012, SEC had proposed amendments and new rules to establish capital and margin requirements for SBSDs and MSBSPs that do not have a prudential regulator, segregation requirements for SBSDs, and establish notification requirements for SBSDs and MSBSPs relating to segregation, in addition to raising the minimum net capital requirements and establishing liquidity requirements for broker-dealers permitted to use internal models when computing net capital. SEC has extended the comment period once, in addition to reopening it once. Moreover, in May 2013, SEC had proposed provisions to establish the cross-border treatment of security-based swap capital, margin, and segregation requirements. SEC received a number of comment letters in response to the 2012 and 2013 Proposals. Finally, in April 2014, SEC proposed an additional non-bank SBSD capital requirement. SEC received one comment letter in response to the 2014 proposal.

    Since publication of the 2012 Proposals, SEC has adopted other rules related to the regulation of the over-the-counter (OTC) derivatives markets pursuant to Title VII of the Dodd-Frank Act. In addition, the prudential regulators and CFTC have adopted or proposed rules under Title VII of the Dodd-Frank Act that are relevant to the Proposals. SEC has carefully considered the comment letters and SEC believes it is prudent to reopen the comment period for the Proposals in light of these comments and regulatory developments. SEC believes the public should have the opportunity to provide comment on the potential economic effects of the Proposals in light of regulatory and market developments since they were published. SEC is also seeking comments on certain aspects of the Proposals for which further information would be particularly helpful to SEC. In particular, SEC is seeking comment on potential rule language that would modify rule text that was in the Proposals. Comment letters received by SEC previously need not be re-submitted, as they will continue to be a part of the public comment file for this rulemaking and considered by SEC.

     

    Related Links 

    Comment Due Date: November 19, 2018

    Keywords: Americas, US, Banking, Securities, Security-based Swaps, Swap Dealers, Swap Participants, Cross-border Treatment, Capital Requirements, Dodd Frank Act, SEC

    Related Articles
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    OCC Updates Bank Accounting Advisory Series in August 2019

    OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

    August 15, 2019 WebPage Regulatory News
    News

    APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

    APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

    August 14, 2019 WebPage Regulatory News
    News

    APRA Applies Additional Capital Requirement for an Australian Insurer

    APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer.

    August 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3646