SEC proposes swaps registration rules

The Securities and Exchange Commission (SEC) has voted to push for a rule making security-based swap entities electronically file their registration with regulators.

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SEC proposes swaps registration rules

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The SEC - which was given authority over security-based swaps under Dodd-Frank - saw its commissioners vote 3-1 to propose the rule and has now provided 60 days for comments to be submitted.

Under the proposed rules, security-based swap dealers and major security-based swap participants would register with the Commission by electronically filing a new form based on the one used for broker-dealers.

Firms would have to ensure a "knowledgeable, senior officer provide a certification as to the firm's financial, operational and compliance capabilities" to the SEC.

In addition, participants would need to obtain and retain information from people involved in security-based swaps, with the chief compliance officer certifying they are not "statutorily disqualified".

Mary Schapiro, chairman, SEC, says: "Registering the major market participants in the largely unregulated security-based swap markets is a critical step toward better protecting investors."

Meanwhile, the commissioners also voted to back the "Volker Rule", preventing banks "engaging in short-term proprietary trading" with their own money.

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