SEC Proposes Registration Process for Swap Players
The SEC has proposed rules outlining the process for registration of security-based swaps dealers and major security-based swaps participants. SBSDs and MSBSPs would be required to file new Form SBSE, which, according to the SEC, is modeled on Form BD. Currently registered BDs would file a short form. As part of the registration, a senior officer must certify as to the firmâ€™s financial, operational, and compliance capabilities. Additionally, the firm must collect information about associated persons involved in effecting security-based swaps, and the CCO must certify that such persons are not statutorily disqualified. Comments are due December 19. The definitions of SBSD and MSBSP have been the subject of SEC and CFTC proposals that are currently in the comment period.
OUR TAKE: Congress mandated regulation of the swaps market as a major component of the Dodd-Frank legislation.