SEC Overcomes Dissent to Finalize Dodd-Frank Swaps Rules

The SEC has finished some work on swaps regulation under the Dodd-Frank Act, despite opposition.

The Securities and Exchange Commission voted 3-2 to adopt a cross-border swaps rule and guidance, as well as related regulation, Dec. 18. The Republican-leaning commission also voted 5-0 to adopt a rule directing swap dealers and major security-based swap participants to follow certain risk mitigation practices.

The cross-border rule package gives guidance on existing Dodd-Frank requirements for swap activity between entities in the U.S. and other countries. It also is intended to harmonize SEC regulations with the Commodity Futures Trading Commission’s regulatory regime, among other ...