The SEC Publishes their Dodd Frank Rules - Does Your Firm Trade Security Based Swaps?

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John Philpott has written an excellent post alerting us all to the publication (on the 4th of February) of the SEC's rules to implement Dodd Frank for Security Based Swaps:

(I) an index that is a narrow-based security index;
(II) a single security or loan; or
(III) an event relating to a single issuer of a security or the issuers of securities in a narrow-based security index.

In plainer English to you and me, that’s things like security indices with nine or fewer component securities, single name swaps, single name CDS and TRS on a single security or loan.

John explains:

  • The time period for the 24 or so banks who will need to demonstrate compliance with these new rules
  • The need for regulatory experts to revisit their knowledge of US regulation
  • Trying to make your way through the arcane format of the federal register to understand the actual rules
  • The thousands of pages of text involved
  • The poor quality of the SEC website
  • Comparing the CFTC and SEC rules where they should be equivalent
  • Whether firms have the necessary people to begin these compliance projects
  • The short time period to get this done

For the full briefing please head over to John's website here.

 

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