SEC Proposes Dodd-Frank Rules Covering Certain Swaps Recordkeeping

The Securities and Exchange Commission April 16 proposed new rules applicable to security-based swap dealers (SBSDs) and major security-based swap participants (MSBSPs).

The proposed rules—required under the Dodd-Frank Wall Street Reform and Consumer Protection Act—cover “recordkeeping, reporting, and notification requirements applicable” to SBSDs and MSBSPs; securities count requirements applicable to some SBSDs; and additional recordkeeping obligations pertaining to the security-based swap and swap activities of certain broker-dealers.

In July 2010, Dodd-Frank was signed into law, Title VII of which created a “new regulatory framework” for the over-the-counter derivatives markets, the SEC said in the rule proposal. Among other things, Title ...