On September 19th, the SEC proposed for comment a new rule under the Securities Act of 1933 ("Securities Act") to implement the prohibition under Section 621 of the Dodd-Frank Act on material conflicts of interest in connection with certain securitizations. Proposed Rule 127B under the Securities Act would prohibit certain persons who create and distribute an asset-backed security, including a synthetic asset-backed security, from engaging in transactions, within one year after the date of the first closing of the sale of the asset-backed security, that would involve or result in a material conflict of interest with respect to any investor in the asset-backed security. The proposed rule also would provide exceptions from this prohibition for certain risk-mitigating hedging activities, liquidity commitments, and bona fide market-making. Comments should be submitted on or before December 19, 2011. SEC Release No. 34-65355. See also SEC Press Release; Paredes Open Meeting Remarks; Aguilar Open Meeting Remarks; Schapiro Open Meeting Remarks.