Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Cross-Border Swaps Are A Top SEC Priority for 2013
Author: Dan Brecher
Date: January 29, 2013
Key Contacts
Back
The Securities and Exchange Commission (SEC) recently announced that cross-border security-based swaps rules would be a top priority for 2013. SEC Chairman Elisse Walter has characterized the swap rules as “the critical linchpin” of the Dodd-Frank Wall Street Reform and Consumer Protection Act due to the “global nature of the market.”
“That is what is first on the agenda and really stands as the most important thing we need to do as a prelude to adopting everything else,” Walter told the SEC’s Investor Advisory Committee.
The Dodd-Frank Act required the SEC and U.S. Commodity Futures Trading Commission to draft rules aimed to bring greater transparency to the swaps market, which is cited as a contributing factor to the financial crisis. Under Dodd-Frank, the majority of swaps are to be cleared and traded through clearinghouses. Also, swap dealers, including some of the world’s largest banks, are required to register with the CFTC.
The SEC and CFTC have struggled with completing the derivative rules as required under the Dodd-Frank Act. After missing several deadlines, Congress has repeatedly called on the SEC and the CFTC to work together to come up with a workable set of rules. “We are very concerned that a lack of coordination between both foreign and domestic regulators could soon lead to a disruption of the derivatives markets,” 14 members of the House of Representatives from both parties wrote in December.
The CFTC has previously released guidance regarding the cross-border application of certain swaps provisions of Dodd-Frank. However, the CFTC has also issued a series of no-action letters and exemptions, which many argue have resulted in a lot of unanswered questions.
To avoid similar confusion, Walter has indicated that the SEC plans to release a formal rulemaking proposal that will include economic analysis of effects of cross-border application of new rules. A timeline, however, has not been announced.
If you have any questions about the new rules for cross-border swaps or would like to discuss how they may impact your business, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
- Locations: New York City, Red Bank, NJ, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Cross-Border Swaps Are A Top SEC Priority for 2013
Author: Dan Brecher
The Securities and Exchange Commission (SEC) recently announced that cross-border security-based swaps rules would be a top priority for 2013. SEC Chairman Elisse Walter has characterized the swap rules as “the critical linchpin” of the Dodd-Frank Wall Street Reform and Consumer Protection Act due to the “global nature of the market.”
“That is what is first on the agenda and really stands as the most important thing we need to do as a prelude to adopting everything else,” Walter told the SEC’s Investor Advisory Committee.
The Dodd-Frank Act required the SEC and U.S. Commodity Futures Trading Commission to draft rules aimed to bring greater transparency to the swaps market, which is cited as a contributing factor to the financial crisis. Under Dodd-Frank, the majority of swaps are to be cleared and traded through clearinghouses. Also, swap dealers, including some of the world’s largest banks, are required to register with the CFTC.
The SEC and CFTC have struggled with completing the derivative rules as required under the Dodd-Frank Act. After missing several deadlines, Congress has repeatedly called on the SEC and the CFTC to work together to come up with a workable set of rules. “We are very concerned that a lack of coordination between both foreign and domestic regulators could soon lead to a disruption of the derivatives markets,” 14 members of the House of Representatives from both parties wrote in December.
The CFTC has previously released guidance regarding the cross-border application of certain swaps provisions of Dodd-Frank. However, the CFTC has also issued a series of no-action letters and exemptions, which many argue have resulted in a lot of unanswered questions.
To avoid similar confusion, Walter has indicated that the SEC plans to release a formal rulemaking proposal that will include economic analysis of effects of cross-border application of new rules. A timeline, however, has not been announced.
If you have any questions about the new rules for cross-border swaps or would like to discuss how they may impact your business, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.