FINRA revised and redesignated its Interpretations of the SEA Financial and Operating Rules to align with recent SEC amendments.
News & Insights
The SEC adopted changes to the exemptions for certain clearing agencies and broker-dealer/futures commission merchants concerning the portfolio margining of swaps and security-based swaps that are cleared credit default swaps.
In new guidance, the SEC Division of Trading and Markets staff addressed the application of financial responsibility requirements (margin, capital and segregation) to security-based swap activities.
The SEC Division of Trading and Markets provided instructions to security-based swap entities on documentation submissions under (i) SEC capital margin and segregation rules and (ii) SBS valuation dispute notices related to portfolio reconciliation.
In response to a request from ISDA and SIFMA, the SEC Division of Trading and Markets will not recommend enforcement action if a security-based swap dealer does not collect initial margin from certain counterparties in connection with an uncleared security-based swap entered into prior to September 1, 2022.