SEC Proposes Rules for Security-Based Swap Dealers and Major Security-Based Swap Participants
October 17, 2012
On October 17, the Securities and Exchange Commission (SEC) proposed capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants, pursuant to Title VII of the Dodd-Frank Act. The proposed rules would determine (i) how much capital dealers in security-based swaps must hold, (ii) when and how these dealers should collect collateral to protect against losses from counterparties, and (iii) how these dealers segregate and protect funds and securities held for customers. The rules also lay out certain risk management requirements. Comments on the proposed rules are due 60 days following their publication in the Federal Register, which is expected shortly.
Press Release, which includes a fact sheet on the NPR
Regulatory Regime for Security-Based Swaps Chart - October 17, 2012