SEC Proposes Rule to Readopt Beneficial Ownership Reporting Requirements on Security-Based Swaps

The SEC proposed for public comment a rule on BENEFICIAL OWNERSHIP REPORTING REQUIREMENTS AND SECURITY BASED SWAPS.  According to its summary, the rule is intended:

To preserve the application of our existing beneficial ownership rules to persons who purchase or sell security-based swaps after the effective date of new Section 13(o) of the Securities Exchange Act of 1934, we are proposing to readopt without change the relevant portions of Rules 13d-3 and 16a-1. The proposals are intended to clarify that following the July 16, 2011 statutory effective date of Section 13(o), which was added by Section 766 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), persons who purchase or sell security-based swaps will remain within the scope of these rules to the same extent as they are now.

Comments should be received on or before April 15, 2011.