SEC Issues Final Rule on Swaps Market Conduct

The Securities and Exchange Commission yesterday adopted by 2-1 vote final rules regarding the external business conduct standards applicable to security-based swap dealers and major security-based swap participants. Among other requirements, the rules govern security-based swap dealers and major security-based swap participants’ dealings with counterparties, including counterparties that are “special entities.”

SEC Commissioner Michael Piwowar dissented, saying the rules do not align with similar rules adopted by the Commodity Futures Trading Commission that apply to swap dealers and major swap participants.

The SEC also voted to issue a concept release soliciting recommendations for how the agency should proceed with modernizing certain business and financial disclosure requirements under Regulation S-K. The JOBS Act requires the SEC to review Regulation S-K and put forth recommendations for streamlining the disclosure requirements. For more information, contact ABA’s Jason Shafer or Barry Mills.