On 25 June 2014, the SEC adopted the first of a series of rules and guidance on cross-border security-based swap activities for market participants. The rules and guidance: (i) explain when a cross-border transaction must be counted toward the requirement to register as a security-based swap dealer or major security-based swap participant and (ii) addresses the scope of the SEC’s cross-border anti-fraud authority. Concurrently, the SEC adopted a procedural rule regarding the submission of “substituted compliance” requests. This rule permits market participants who are in compliance with comparable regulations in non-US jurisdictions to be granted a request for substituted compliance by the SEC, which would be a determination that such market participant satisfied certain Title VII security-based swap requirements by complying with comparable non-US rules.

The full text of the final rules is available at: http://www.sec.gov/rules/final/2014/34-72472.pdf.