May 27, 2020

May 26, 2020

Subscribe to Latest Legal News and Analysis

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.

©2020 Katten Muchin Rosenman LLP


About this Author

Guy Dempsey Jr., Bank Regulations Legal Specialist, Katten Muchin

Guy C. Dempsey Jr. concentrates his practice on derivatives and structured products and on bank regulation. He advises clients on derivatives transactions of all types across all asset classes, as well as on the corporate governance, regulatory, collateral, compliance, insolvency and litigation issues associated with such products.

Much of Guy’s work involves helping bank and non-bank clients analyze the details and impact of the Dodd-Frank Act. He maintains deep knowledge of the banking laws and regulations relating to capital markets activities....