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SEC adopts final rule on security-based swaps

  • SEC document Image

Apr 14, 2016

The SEC has issued a final rule, “Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants.”

The rules “implement provisions of Title VII relating to business conduct standards and the designation of a chief compliance officer for security-based swap [SBS] dealers and major [SBS] participants.” The final rule also addresses “the cross-border application of the rules and the availability of substituted compliance.”

The final rules include:

  • Rule 15Fh-1 — Defines the scope of the rules.
  • Rule 15Fh-2 — Defines terms used throughout the rules.
  • Rule 15Fh-3 — Addresses the business conduct requirements applicable to SBS entities.
  • Rule 15Fh-4 — Outlines unlawful activities for SBS entities and contains requirements for SBS dealers that advise special entities.
  • Rule 15Fh-5 — Provides requirements for SBS entities that act as counterparties to special entities.
  • Rule 15Fh-6 — Imposes pay-to-play restrictions on SBS dealers.
  • Rule 15k-1Outlines requirements for chief compliance officers.

The final rule will become effective on June 27, 2016.

For more information, see the final rule and the related speech by SEC Chair Mary Jo White on the SEC’s Web site.

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