The Securities and Exchange Commission has taken another significant step toward establishing the regulatory regime for security-based swap dealers today by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.  

These and other rules previously adopted by the Commission are designed to enhance the risk mitigation practices of firms that stand at the centre of the security-based swap market, thereby protecting their counterparties and reducing risk to the market as a whole. 

“I once again would like to thank Commissioner Peirce for her excellent leadership on our efforts to stand up the Dodd-Frank Title VII regulatory regime. Today’s rules reflect another important step in this effort. These rules help ensure that the firms who are at the centre of the security-based swap market manage counterparty risk appropriately and in so doing protect investors and the market more generally,” says SEC Chairman Jay Clayton. “Our colleagues at the SEC, including our teams in the Division of Trading and Markets and the Division of Economic and Risk Analysis, brought their extensive knowledge and expertise to bear in crafting these rules.”

“These final rules are designed to ensure the financial integrity of dealers at the centre of the critically important security-based swap market and represent an enormous effort on the part of our staff, particularly in the Divisions of Trading and Markets and Economic and Risk Analysis,” says Commissioner Hester Peirce. “In addition, working with Commissioner Quintenz and the CFTC on this important rule has been a wonderful opportunity to cooperate in a way that serves the American people. Throughout the process, our two staffs have drawn on one another’s experiences, expertise, and insights in an effort to build effective rules. I am grateful to Chairman Giancarlo and Chairman Clayton for their work on this rule and our broader cooperation efforts.”