On February 2nd, the SEC published proposed Regulation SB SEF under the Securities Exchange Act of 1934. The proposed regulation is designed to create a registration framework for security-based swap execution facilities (SB SEFs); establish Core Principles compliance rules; and implement a process for the submission of proposed SB SEF rule changes. The SEC also published a proposed interpretation of the definition of "security-based swap execution facility" to provide guidance on the characteristics of those systems or platforms that would satisfy the statutory definition. In addition, the SEC proposed amendments to Rule 3a-1 under the Exchange Act to exempt a registered SB SEF from the Exchange Act's definition of "exchange" and to add Rule 15a-12 under the Exchange Act to exempt, subject to certain conditions, a registered SB SEF from regulation as a broker. Comments should be submitted on or before April 4, 2011. SEC Release No. 34-63825; SEC Press Release. See also Schapiro Remarks.