With long-awaited trading rules, SEC positions itself as an extraterritorial regulator
Nearly three years after Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities Exchange Commission (SEC) has at last proposed new trading rules for foreign banks that do business with US entities in the over-the-counter (OTC) derivatives market. On 1 May 2013, the SEC issued an extensive set of proposals applicable to market participants engaged in the cross-border trading of security-based swaps. These proposals provide guidance for foreign and domestic entities, but also offer insight into the SEC’s own interpretation of its role as a regulator of extraterritorial activity in the securities markets.
On May 1, 2013, the SEC issued an extensive set of proposals applicable to market participants engaged in cross-border trading of security-based swaps. These proposals provide guidance for foreign and domestic entities, but also offer insight into the SEC’s own interpretation of its role as a regulator of extraterritorial activity in the securities markets.
Title VII of the Dodd-Frank Act sets forth a series of regulations concerning the cross-border derivatives market, which prior to 2010 was largely unregulated. This market, which is estimated to involve US$630 trillion of activity worldwide, generally involves trading, outside of a formal exchange, of derivatives by a foreign entity with a US-based person or institution. Since the financial crisis of 2008, global regulators have issued a series of directives and guidelines concerning derivatives trading intended to increase transparency and reduce systematic risks. Dodd-Frank categorizes derivatives as either “swaps,” to be regulated by the Commodity Futures Trading Commission (CFTC), or “security-based swaps,” to be regulated by the SEC…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Trust Deficit: After the Crash report suggests that trust between business, politics and the media has broken down completely.
This update contains a summary of news and legal developments that have affected the banking and finance industry over the last month.
Analysis from The Lawyer
The fragile refinance market is back in rude health and US-style alternative lenders are stepping up with innovative structures to sustain the recovery
The Lawyer’s latest Top 50 litigation firms list shows that business for dispute specialists is roaring along while new in-depth detail reveals the winning strategies