SEC Open Meeting, April 18, 2012

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Gavel.png FINAL RULE: CFTC/SEC Joint Final Rule on Swap Entity Definitions
Dodd-Frank Timeline, Further Defining “Swap Dealer,” “Major Swap Participant” and “Eligible Contract Participant,” SEC
Proposal Date Comment Deadline Final Rule Issue
December 21, 2010 February 22, 2011 April 2012

The U.S. Securities and Exchange Commission (SEC) public meeting focused on finalizing rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act concerning the further definition of "swap dealer," "security-based swap dealer," "major swap participant," "major security-based swap participant" and "eligible contract participant," and is also a joint proposal with the Commodity Futures Trading Commission (CFTC).

Archived webcast:

Link to Archived Webcast

Meeting Summary[edit]

Topics of Discussion

  • Further defining "swap dealer," "security-based swap dealer," "major swap participant," "major security-based swap participant" and "eligible contract participant";
  • Setting the de minimis threshold for these security-based swaps at $150 million and the phase-in level at $400 million;
  • Identifying security-based swap dealer entities that specifically engage in dealing activity in this market; and
  • Regulating only those market participants who engage in dealing activity above a de minimis amount.


Related Documents[edit]

CFTC/SEC Joint Final Rule on Swap Entity Definitions

Read final rule.png



Speakers[edit]

Chairman Mary Schapiro, whose statements include:

  • An introduction to Title VII, which includes mandates that dealers and major market participants register and be subject to regulation, and also defines "swap dealer," "security-based swap dealer," "major swap participant," and "major security-based swap participant";
  • An overview of work done by the staff of the SEC's Division of Risk, Strategy and Financial Innovation; and
  • A reminder that rules under Title VII are continuing, and that adopting definitions of these entities is "a foundational step in the establishment of the new regime to regulate trading in this significant market."<ref>Opening Statement at SEC Open Meeting: Defining Swaps-Related Terms. SEC. Retrieved on April 18, 2012.</ref>

Commissioner Luis A. Aguilar, whose statements include:

  • An explanation of the challenges surrounding the definition of "de minimis" in relation to swap dealer registration;
  • Initial concerns that the $3 billion de minimis amount was set too high;
  • A discussion of the phase-in period, during which staff will conduct a study to examine how the security-based swap market develops as a result of new regulation;
  • A reminder that the SEC should be concerned with how these rules affect all market participants, and not just the entities defined by this rule; and
  • Support for the rule.<ref>Defining Security-Based Swap Dealers and Major Security-Based Swap Participants. SEC. Retrieved on April 18, 2012.</ref>

Commissioner Troy A. Paredes, whose statements include:

Commissioner Daniel M. Gallagher, whose statements include:

References[edit]

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