SEC Proposes Confirm Rule for Security-Based Swaps
The SEC, pursuant to its mandate under the Dodd-Frank
Act, has proposed a new rule requiring the delivery of trade confirms for
security-based swap transactions. The
confirm requirement would apply to the designated security-based swap dealer,
major security-based swap participant, or one of the counter-parties. The confirm must be delivered within 15
minutes for an electronically executed transaction, 30 minutes for transactions
that are only processed electronically, and 24 hours for manual
transactions. The confirm must contain
broad information about the transaction including asset class, notional amount,
price, and terms.
OUR TAKE: Now that the SEC has broad authority over
security-based swaps, it follows that it would apply similar confirm rules to
swaps as it does for other securities transactions.