As part of the ongoing effort to enhance oversight of derivatives markets in the wake of the financial crisis, U.S. regulators finalized rules today that will establish a registration regime for dealers and participants in securities-based swaps.
The U.S. Securities and Exchange Commission (SEC) adopted new rules today to provide a registration process for securities-based swap dealers and major swap participants. Among other things, the new rules set out the information that registered firms will be required to provide to regulators. And they will require senior officers to attest that the firm’s policies and procedures comply with federal securities laws.
“Today’s rules provide the commission with the fundamental tool to supervise the business operations of dealers who occupy a critical role in the securities-based swap market,” said Mary Jo White, chairwoman of the SEC. “These rules mark an important new phase in our implementation of a regulatory regime that protects investors and enhances the integrity of this market.”
At the same time, the SEC also proposed a new rule that would create a process for firms to apply for waivers for individuals who are otherwise disqualified, so that they can continue dealing in swaps. That proposal will go out for a 60-day comment period.
The new registration rules will be effective 60 days after they are published in the Federal Register.