Regulatory Alerts2019-02-15 | 2018-27979Added
Risk Mitigation Techniques for Uncleared Security-Based Swaps
The Securities and Exchange Commission proposes rules requiring registered security-based swap dealers and major participants to apply specific risk mitigation techniques to portfolios of uncleared security-based swaps. These requirements mandate periodic portfolio reconciliation with counterparties, portfolio compression exercises where appropriate, and the execution of written trading relationship documentation prior to or contemporaneously with transactions. The proposal also includes an interpretation of cross-border application, amendments to substituted compliance rules, and requests comment on security-based swap data repository verification obligations.
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