SEC Makes Technical Corrections to Final Rule Establishing Swap Capital, Margin and Segregation Requirements

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.