SEC Allows SWIFT for Confirm Delivery
The staff of the SEC’s Division of Trading and Markets has granted no-action relief to allow broker-dealers to use SWIFT messaging to satisfy their confirmation delivery requirements under Rule 10b-10. The no-action relief is limited to institutional customers that are also SWIFT users. The customer must agree to log on and retrieve all SWIFT messages on each business day and to consent to use of the SWIFT system to receive confirms. In its response, the staff indicated that it will no longer respond to no-action requests in this area because it has adequately established criteria for use of electronic media to satisfy Rule 10b-10 through a series of no-action letters.
OUR TAKE: Allowing the SWIFT system to serve as the trade confirmation process will greatly expand use of electronic confirms.