Tuesday, December 5, 2023 | Back issues
Courthouse News Service Courthouse News Service

Swap Participants May Face Online Registration

WASHINGTON (CN) - The Securities and Exchange Commission plans to require dealers of and major participants in securities-based swap transactions to register online with the commission, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Under Dodd-Frank, the SEC has authority over security-based swaps, which are an exchange of the benefits of ownership of an underlying security between counterparties.

The SEC wants swap participants to register using an electronic form based on its existing broker-dealer registration form, which captures corporate contact and licensing information for would-be participants.

The new rules would require securities-based swap participants to appoint a senior officer to provide a certification as to the participant's financial, operational and compliance capabilities to the SEC and have a compliance officer certify that none of a participant's trade associates are disqualified from trading for previous violations of securities or other laws.

Foreign participants would also be required to appoint a U.S. agent to accept legal documents on their behalf and certify and submit an opinion of counsel that the non-U.S. entity is able to provide the SEC with access to its books and records and submit to on-site inspections and examination by the agency.

The public has until Dec. 19, 2011 to comment on the SEC's proposed rule.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.