SEC Proposes New Rules to Implement Requirements for Swap Execution Facilities

The Securities and Exchange Commission, taking another step in its derivatives rulemaking, Feb. 2 unanimously proposed new rules that would help define, and establish registration procedures for, new regulated trading platforms for security-based swaps known as security-based swap execution facilities.

The proposal also would set out the SEFs’ rule filing process, as well as their responsibilities and core principles.

The rulemaking is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which charges the SEC and the Commodity Futures Trading Commission to coordinate on creating a new regulatory framework for the currently opaque $600 trillion over-the-counter derivatives market. ...