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SEC issues six rules after its December meeting

  • SEC (US Securities and Exchange Commission) Image

Dec 21, 2018

After meeting this week, the SEC has issued four final rules and two proposals.

The final rules are summarized as follows:

  • Rule of Practice 194 — This final rule “creates a transparent, efficient, and comprehensive process for a registered security-based swap dealer or major security-based swap participant, collectively known as SBS Entities, to apply to the Commission for relief from the statutory disqualification prohibition found in Exchange Act Section 15F(b)(6). Rule of Practice 194 also provides an exclusion for an SBS Entity from the prohibition in Exchange Act Section 15F(b)(6) with respect to associated persons entities, consistent with the Commodity Futures Trading Commission’s (CFTC) approach with respect to the statutory prohibition for swap entities.”
  • “Transaction Fee Pilot for NMS Stocks” — The pilot will apply to all stock exchanges and “is designed to generate data that will help the Commission analyze the effects of exchange transaction fee and rebate pricing models on order routing behavior, execution quality, and market quality generally.”
  • “Amendments to Regulation A” — Please see our earlier story on this final rule.
  • “Disclosure of Hedging by Employees, Officers and Directors” — Please see our earlier story on this final rule.


The proposed rules are summarized as follows:

  • “Risk Mitigation Techniques for Uncleared Security-Based Swaps” — This proposed rule would require “the application of risk mitigation techniques to portfolios of uncleared security-based swaps. Proposed Rules 15Fi-3 through 15Fi-5 would establish requirements for registered security-based swap dealers and major security-based swap participants (SBS Entities).” Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register.
  • “Fund of Funds Arrangements” — This proposed rule and related amendments would “streamline and enhance the regulatory framework for fund of funds arrangements. Funds of funds are created when a mutual fund or other type of fund invests in shares of another fund.” Comments on the proposed rule are due 90 days after the date of its publication in the Federal Register.

For more information, see the press releases page of the SEC’s Web site.

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