On August 5, 2015, the SEC adopted final rules under Dodd-Frank providing for the registration of security-based swap dealers and major security-based swap participants. Under the final rules, security-based swap dealers and major security-based swap participants, collectively referred to as SBS Entities, will be granted conditional registration status after filing an application with the SEC and providing certain senior officer certifications, pending the SEC’s review of the application. The SEC will then review the application to either grant ongoing registration or institute proceedings to deny registration to the SBS Entity. The registration process requires the submission by an SBS Entity of information about its business activities, structure and background as well as information about their control affiliates. Although the final rule will become effective 60 days after publication in the Federal Register, the compliance date for the final rules will depend on the timing of implementation of certain other security-based-swap-related final rules. Additionally, on August 5, 2015, the SEC issued proposed rules, which would provide a process for a registered SBS Entity to apply to the SEC for an order permitting the SBS Entity to continue effecting security-based swaps through an associated person who is subject to a statutory disqualification. The SEC may issue an order granting such relief if it would be consistent with the public interest to permit such a person to be engaged in effecting security-based swaps notwithstanding the statutory disqualification. Comments on the proposed rule are due 60 days after publication in the Federal Register.
The SEC press release is available at: http://www.sec.gov/news/pressrelease/sec-adopts-registration-rules-for-security-basedswap-dealers.html, the text of the final rule for registration of SBS Entities is available at: http://www.sec.gov/rules/final/2015/34-75611.pdf and the text of the proposed rule is available at: http://www.sec.gov/rules/proposed/2015/34-75612.pdf.