SEC Re Treatment of Security-Based Swaps as Securities (December 2011)
SIFMA provides preliminary comments to the Securities and Exchange Commission (SEC) regarding a request for permanent exemption of security-based swaps as securities.
Effective July 16, 2011, the Dodd-Frank Act amended the definition of security for purposes of the Securities Act of 1933 (the “1933 Act”) and the Securities Exchange Act of 1934 (the “1934 Act”) to include security-based swaps (“SBS”). As a result, SBS became subject to the provisions of the 1933 and 1934 Acts, and the underlying rules that applied to securities before July 16, as well as the rules that applied to FINRA members. The Dodd-Frank Act also created an entirely new, comprehensive regulatory regime for SBS (such provisions of the Dodd-Frank Act, and the rules adopted thereunder, the “SBS provisions”).