SEC Finalizes Dodd-Frank Recordkeeping Rules for Swaps

Dealers and others in the swaps market have new disclosure and recordkeeping requirements from the SEC.

The Securities and Exchange Commission on Sept. 19 unanimously adopted rules that will require security-based swap dealers and major security-based swap participants to generate and maintain financial and accounting records concerning their swap activities. The Dodd-Frank Act mandated the regulations.

The commission proposed the rules under then-Chairman Mary Jo White in 2014. The SEC under Chairman Jay Clayton then reopened public comment periods for the proposal and other Dodd-Frank swap plans in 2018.

“These rules will help the Commission ensure compliance with rules designed to promote financial responsibility and investor protection,” Clayton said in a statement.

The new regulations are part of the SEC’s efforts to stand up the swap regime under Title VII of Dodd-Frank. The commission adopted capital requirements for dealers and others in the swaps market in June and proposed rules related to cross-border swaps in May as part of this work.