Regulatory Alerts2022-04-06
Rules Relating to Security-Based Swap Execution and Registration and Regulation of Security-Based Swap Execution Facilities
The Securities and Exchange Commission proposes Regulation SE to establish a comprehensive registration and regulatory framework for security-based swap execution facilities (SBSEFs) under the Securities Exchange Act of 1934. The proposal implements Dodd-Frank Act mandates by setting forth fourteen core principles for SBSEF operations, defining permissible trade execution methods, addressing cross-border trading applications, and mitigating conflicts of interest for SBSEFs and national securities exchanges. Additionally, the Commission amends existing rules to exempt qualifying SBSEFs from certain broker and exchange definitions, creates an appeal process for aggrieved parties, and formally withdraws multiple outdated proposed rules from 2010, 2011, and 2013.