Regulatory Alerts2021-02-01 | 2020-28194Added
Exemption From the Definition of “Clearing Agency” for Certain Activities of Security-Based Swap Dealers and Security-Based Swap Execution Facilities
The Securities and Exchange Commission adopted Rule 17Ad-24 to exempt registered security-based swap dealers, security-based swap execution facilities, and entities eligible for the de minimis exception from the definition of "clearing agency" under the Securities Exchange Act of 1934. This final rule addresses disparate regulatory treatment by excluding activities such as facilitating payments, deliveries, and trade data comparison from clearing agency registration requirements when performed as part of customary dealing or execution functions. The exemption aims to prevent overlapping or duplicative regulatory burdens on these market participants while maintaining investor protection and market integrity.
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