US Securities and Exchange Commission Adopts Final Rules Regarding Cross-Border Security-Based Swap Activities of Dealers and Major Participants
15 July 2014
Mayer Brown Legal Update
The US Securities and Exchange Commission (SEC) has adopted rules regarding the application of the “security-based swap dealer” and “major security-based swap participant” definitions to cross-border security-based swaps activities under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The SEC also adopted procedural rules for market participants and non-US regulators to request that the SEC determine that another jurisdiction’s security-based swap rules are comparable to, and may be complied with in place of, the SEC’s rules when acting in that jurisdiction. These provisions implement an important subset of the SEC’s 2013 cross-border proposal and reflect efforts to reconcile the SEC’s security-based swap regulation with swap regulation being implemented by the US Commodity Futures Trading Commission. Further, the SEC adopted a new rule describing the scope of the SEC and US Department of Justice’s cross-border enforcement authority with respect to the antifraud provisions of the US federal securities laws.