The SEC made technical corrections to a final rule establishing security-based swap capital, margin and segregation requirements. The effective date is October 21, 2019.
As previously covered, the adopted rules will, among other things:
- establish minimum capital requirements, where there is not a prudential regulator, for security-based swap dealers ("nonbank SBSDs");
- increase the minimum net capital requirements for broker-dealers that use internal models to compute net capital;
- adopt capital requirements for security-based swap dealers ("SBSDs") and swap-related amendments to the rules for broker-dealers that are not registered as SBSDs;
- adopt security-based swap margin requirements for nonbank SBSDs;
- adopt segregation requirements for SBSDs and stand-alone broker-dealers for cleared and non-cleared security-based swaps; and
- allow foreign SBSDs to request substituted compliance regarding capital and margin requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
