SEC Proposes Rules Imposing Business Conduct Standards on Security-Based Swap Dealers

The SEC voted to propose rules that would impose certain business conduct standards upon security-based swap dealers and major security-based swap participants when those parties engage in security-based swap transactions.  The SEC’s proposed rules stem from Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which authorizes the Commission to implement a comprehensive framework for regulating the over-the-counter swaps markets.

Public comments on the SEC’s proposal should be received by Aug. 29, 2011.