Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, October 17, 2012

SEC Proposes Requirements for Traders of Derivatives

The SEC voted today to put out for public comment proposed rules that would establish capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants. In addition, the proposed rules would enhance the capital requirements for the large broker-dealers that have been approved to use internal models in computing their net capital.  The proposals stem from Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Chairman Schapiro stated that "If today’s proposal passes, the SEC will have proposed — and in some cases adopted — substantially all of the rules that create the new regulatory regime for derivatives within our jurisdiction." 

While the text of the proposed rules is not yet available, the SEC has posted a Fact Sheet at its website describing the proposed rules and also has a webpage depicting the regulatory regime for security-based swaps and details what happens as a transaction occurs.

Opening Statement at the SEC Open Meeting by Chairman Mary L. Schapiro

WashPost, SEC proposes setting minimum capital levels, other requirements for traders of derivatives

SEC Action | Permalink

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