SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

By Regulatory News

September 19, 2019

SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act. These actions establish recordkeeping and reporting requirements for SBSDs and major security-based swap participants (MSBSPs) and amend the recordkeeping and reporting requirements for broker-dealers. The rules will become effective 60 days after publication in the Federal Register. The compliance date for the rule amendments and new rules is 18 months after the effective date of any final rules addressing the cross-border application of certain security-based swap requirements.

Under these rules, these companies will be required to create and retain fundamental business records to document and track their operations, facilitating the Commission's ability to monitor compliance and reducing risk to the market. The cross-border rule of SEC has been amended to permit foreign SBSDs and MSBSPs to avail themselves of substituted compliance to satisfy the recordkeeping and reporting requirements. These rules address seven key areas:

They establish record making requirements for SBSDs and MSBSPs and amend the existing record making requirements for broker-dealers to account for their security-based swap activities.
They establish record preservation requirements for SBSDs and MSBSPs and amend the existing record preservation requirements for broker-dealers to address records relating to their security-based swap activities.
They establish periodic reporting and annual audit requirements for SBSDs and MSBSPs and amend the existing reporting requirements for broker-dealers to account for their security-based swap activities.
They establish early warning notification requirements for SBSDs and MSBSPs.
They establish security count requirements for SBSDs that are not registered as broker-dealers and do not have a prudential regulator (stand-alone SBSDs).
They amend the existing cross-border rule of SEC to provide a means to request substituted compliance with respect to the recordkeeping and reporting requirements for SBSDs and MSBSPs.
They amend a rule that permits certain SBSDs that are registered as swap dealers and predominantly engage in a swaps business to comply with CFTC requirements in lieu of SEC requirements. The amendment adds the recordkeeping and reporting requirements being adopted now to this alternative compliance mechanism.

Related Links

Effective Date: FR + 60 Days

Keywords: Americas, US, Banking, Securities, Swaps, SBSD, MSBSPs, Dodd-Frank Act, CFTC, SEC

Ravi Menon of MAS Appointed as Chair of BIS Asian Consultative Council

APRA Observations from Thematic Review on Recovery Plans of Insurers


News US Agencies Requests Comments on Use and Impact of CAMELS Ratings US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS). October 18, 2019 WebPage Regulatory News
News BoE Announces Date for Publication of Stress Test Results for Banks BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019. October 18, 2019 WebPage Regulatory News
News PRA Consults on Approach to Supervising Liquidity and Funding Risks In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk. October 17, 2019 WebPage Regulatory News
News US Agencies Consult on Policy Statement on Allowance for Credit Losses US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems. October 17, 2019 WebPage Regulatory News
News FSI Paper Examines Use of Suptech Initiatives by Financial Authorities The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally. October 17, 2019 WebPage Regulatory News
News ECB Publishes Recommendations on Euro Risk-Free Rates Transition ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates. October 17, 2019 WebPage Regulatory News
News US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102). October 17, 2019 WebPage Regulatory News
News FSB Report Examines Implementation and Impact of G20 Financial Reforms FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms. October 16, 2019 WebPage Regulatory News
News EBA Launches Consultation on Comprehensive Pillar 3 Disclosures EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions. October 16, 2019 WebPage Regulatory News
News EBA Consults on Revised Technical Standards on Supervisory Reporting EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting. October 16, 2019 WebPage Regulatory News

RESULTS 1 - 10 OF 3997