SEC Open Meeting, October 12, 2011
|Proposal Date||Comment Deadline (Reopened)||Final Rule Issue||Effective Date|
|October 24, 2011||July 22, 2013||August 14, 2015||October 13, 2015|
|Proposal Date||Comment Deadline||Final Rule Released|
|October 12, 2011||February 13, 2012||December 10, 2013|
The U.S. Securities and Exchange Commission (SEC) held a public meeting on October 12, 2011 focused on the registration of security-based swap dealers and major security-based swap participants, and prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The rules propose that:
- Security-based swap dealers and major swap participants electronically file Form SBSE to register with the SEC.
- Security-based swap entities that are already registered with the CFTC may file the shorter form, Form SBSE-BD, in order to register with the SEC.<ref>SEC Proposes Rules for Registration of Securities-Based Swap Dealers and Major Security-Based Swap Participants. SEC. Retrieved on October 12, 2011.</ref>
- Banking entities create internal compliance programs "subject to supervisory oversight" in order to comply with Section 619.
- Certain trading firms report quantitative measurements to federal agencies.<ref>SEC Jointly Proposes Prohibitions and Restrictions on Proprietary Trading. SEC. Retrieved on October 12, 2011.</ref>
Registration of Security-Based Swap Dealers and Major Security-Based Swap Participants
- The proposed rules define SEC registration procedures for security-based swap dealers and security-based swap participants.
Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds
- The proposed rule would implement the Volcker Rule, or Section 619 of Dodd-Frank. These rules prohibit and/or restrict certain proprietary trading activities, require certain firms to establish internal compliance programs, and are jointly proposed by the SEC, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency.
Commissioner Elisse B. Walter, whose statements include:
- Emphasizing the need to review of existing registration programs.
- Support for the proposal.
Commissioner Troy A. Paredes, whose statements include:
- "The proposed approach to registration is too flawed and problematic for me to support, even as a proposal. Accordingly, I respectfully dissent."
- Highlighting the competitive disadvantage at which the Volcker Rule places large U.S. banks, as well as the excessive compliance burden and cost.
Commissioner Luis A. Aguilar, whose statements include:
- "As we move to adopt these rules, I am particularly interested in comments addressing the most effective way to ensure that SBS entities have the capabilities required to fulfill the crucial roles they occupy."
- Support for a final rule that limits a proprietary trading firm's ability to increase profits by abusing or misusing client information.
Chairman Mary L. Schapiro, whose statements include:
- Noting the similarities and differences between the SBS registration rules proposed by the CFTC and by the SEC.
- "The statute is intended to curb the proprietary interests of commercial banks and their affiliates in order to protect taxpayers and consumers by prohibiting insured depository institutions from engaging in risky proprietary trading. Section 619 is a key component of the Dodd-Frank legislation. Its implementation would be a step forward in reducing conflicts of interests between the self-interests of banking entities and the interests of their customers."<ref>Commission Speeches and Public Statements. SEC. Retrieved on October 12, 2011.</ref>