SEC Publishes Final Rules and Guidance on the Application of "Security-Based Swap Dealer" and "Major Security-Based Swap Participant" Definitions (Fed. Reg.)

The SEC published final rules and guidance regarding definitions for "Security-Based Swap Dealer" and "Major Security-Based Swap Participant." The rules and guidance apply to cross-border security-based swap ("SBS") activities and were published in the Federal Register.

In addition to the final rules and interpretation, the SEC adopted procedural rules relating to the submission of applications for substituted compliance, as well as a final rule addressing the scope of its authority regarding enforcement proceedings under Dodd-Frank Section 929P ("Unlawful Margin Lending").

The new rules focus on the following areas:

• situations in which cross-border SBSs must be counted toward an entity's dealing total for purposes of the de minimis exemption;
• procedures as to substituted compliance; and
• an anti-fraud rule.

The rules will become effective on September 8, 2014.

See: 79 FR 39067.Related news: SEC Adopts Cross-Border Security-Based Swap Rules (with Lofchie Comment) (June 25, 2014); SEC-Proposed Rules for Security-Based Swap Dealers and Major Participants (Fed. Reg.) (with Cadwalader Memo) (May 2, 2014); Cadwalader C&F Memo: SEC Proposes Rules for Security-Based Swap Dealers and Major Participants (April 17, 2014).