SEC Proposes Rule for the Timely Acknowledgment and Verification of Security-Based Swap Transactions

SEC Release

The SEC voted to propose Rule 15Fi-1 under the Exchange Act to require security-based swap dealers and major security-based swap participants to provide counterparties with a trade acknowledgment detailing information specific to the transaction. Among other things, the new rule specifies (1) when a counterparty must be provided with a trade acknowledgment; (2) written policies and procedures that must be in place and designed to obtain verification of the terms outlined in the trade acknowledgment; (3) which entity is responsible for providing a trade acknowledgment; (4) the manner in which the rule requirements can be satisfied by processing through a clearing agency; (5) the details of the transaction that must be provided in the trade acknowledgment; and (6) a limited exception from Rule 10b-10 for security-based swap entities that are also brokers.

Please contact any of the following Cadwalader attorneys if you have any questions about this item:

Steven Lofchie; [email protected]

Jeffrey Robins; [email protected]

Document Number

SEC Release 34-63727

Date

January 14, 2011

Cross References (links may require a Cabinet subscription)

SEC PR 2011-13

Exchange Act Rule 15Fi-1 (proposed)

Exchange Act Rule 10b-10

Dodd-Frank § 764(a)