Feb 16, 2016
From the Financial Reporting Network
The SEC recently adopted a final rule, Security-Based Swap Transactions Connected with a Non-U.S. Person's Dealing Activity That Are Arranged, Negotiated, or Executed By Personnel Located in a U.S. Branch or Office or in a U.S. Branch or Office of an Agent; Security-Based Swap Dealer De Minimis Exception, that specifies when certain non-U.S. persons would be required to count a security-based swap transaction with another non-U.S. person toward the requirement to register as a security-based swap dealer based on the dealer’s activity in the United States. The objective of the rule is to make U.S. and foreign dealers subject to Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act when they engage in security-based swap dealing activity in the United States.
The rule, together with rules issued in 2014, completes the SEC’s rulemaking related to identifying transactions that a firm engaged in security-based swap dealing activity must count toward its dealer de minimis thresholds.
The rule will be effective 60 days after it is published in the Federal Register, and compliance is required the later of 12 months following publication in the Federal Register or the SBS Entity Counting Date, as defined in Section VII of the Dodd-Frank Act.