SEC proposes rules regarding security-based swap execution facilities

Apr 14, 2022
Asset management
Financial services Financial reporting SEC matters Audit

On April 6, the SEC proposed rules in new Regulation SE under the Securities Exchange Act of 1934 to create a regime for the registration and regulation of security-based swap execution facilities (SBSEFs). The new regulatory framework is designed to harmonize as closely as practicable with parallel rules of the Commodity Futures Trading Commission that govern swap execution facilities and swap execution generally. If adopted, the proposal would:

  • Implement the Exchange Act’s trade execution requirement for security-based swaps and address the cross-border application of that requirement
  • Implement Section 765 of the Dodd-Frank Act to mitigate conflicts of interest at SBSEFs and national securities exchanges that trade security-based swaps
  • Promote consistency between proposed Regulation SE and existing rules under the Exchange Act

The SEC is withdrawing all previously proposed rules, rule amendments and interpretations regarding SBSEFs.

The proposed rule is available for comment until June 6, 2022 or for 30 days following its publication in The Federal Register, whichever period is longer.

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