SEC Issues Security-Based Swap Recordkeeping and Reporting Rules
On September 19, the Securities and Exchange Commission adopted a package of new final rules and rule amendments dealing with recordkeeping and reporting requirements for security-based swap dealers (SBS dealers). In general, the SEC is requiring SBS dealers to create and maintain records with respect to security based-swaps in a manner consistent with current recordkeeping and record retention rules that apply to broker-dealers. The SEC is, however, providing alternate compliance mechanisms that will allow an SBS dealer that also is a swap dealer but is not a broker-dealer to comply with Commodity Futures Trading Commission (CFTC) rules instead and will allow a non-US SBS dealer to request permission to comply with its home country rules.
The new rules go into effect 60 days after they are published in the Federal Register, but the related compliance date will be 18 months after the effective date of future final SEC rules addressing the cross-border application of security-based swap requirements, which is the last of the SBS rules the SEC needs to adopt to complete their Dodd–Frank Wall Street Reform and Consumer Protection Act swap rulemaking obligations.
The text of the new rules are available here.
An SEC Press Release and Fact Sheet concerning the new rules are available here.