FisherBroyles Partner Julian Hammar recently authored an article entitled “SEC Adopts Recordkeeping and Reporting Rules for Security-Based Swaps,” published in The Review of Securities and Commodities Regulation. The article examines the SEC’s final recordkeeping and reporting rules for security-based swaps, which rely heavily on the existing broker-dealer framework. It discusses the rules as applied to various security-based swap activities, including record making, record preservation, periodic reporting and annual audit, early warning notification, and security counts, as well as provisions for alternative compliance with CFTC rules and substituted compliance for foreign dealers. The finalization of these rules, and another set of rules addressing cross-border issues recently finalized by the SEC, triggers the registration and compliance requirements under the SEC’s rules for security-based swap dealers and major security-based swap participants. The compliance date for registration will be October 6, 2021. Market participants who intend to register will need to begin preparing to comply with, among other rules, the reporting and recordkeeping rules discussed in the article.
A complimentary copy of Julian’s article is available here.