The SEC voted to finalize an initial set of rules for cross-border swaps transactions. The rules address which firms and individuals, both U.S.-based and overseas, are required to register with the SEC. They also include provisions allowing overseas participants to seek substituted compliance requirements and clarifications on the commission’s anti-fraud authority.
Specifically, the rules detail what transactions U.S. and non-U.S. persons must count against the thresholds to register as a security-based swaps dealer or as a major security-based swaps participant. The SEC said that it took the CFTC’s related guidance into account in an effort to minimize compliance burdens.
The rules will take effect 60 days after publication in the Federal Register. The SEC is next expected to issue final rules on swap reporting and swap data repository registration.