On October 17th, the SEC voted to publish for public comment proposed capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants. The proposed rules address the amount of capital dealers in security-based swaps must hold; when and how these dealers need to collect collateral to protect against losses from counterparties; and the method by which dealers segregate and protect funds and securities held for customers. The SEC is also proposing capital and margin requirements for major security-based swap participants. Further, the SEC will consider proposing rules to increase capital requirements for the largest broker-dealers that use internal models in calculating how much capital they need to hold. Comments should be submitted within 60 days after publication in the Federal Register, which is expected shortly. SEC Press Release. On October 19th, MarketWatch discussed the proposal's provisions that allow major swap participants to use internal value-at-risk models, and the disadvantages those models present. VAR.