SEC Adopts New Procedures for Reviewing Clearing Submissions Under Dodd-Frank Act (SEC Press Release Final Rule)

The SEC has adopted rules that establish procedures for its review of certain clearing agency actions. The rules were required by the Dodd-Frank Act, which called for a new regulatory framework for trading in over-the-counter derivatives, including swap agreements. View press release here.

See: Final Rule: Process for Submissions for Review of Security-Based Swaps for Mandatory Clearing and Notice Filing Requirements for Clearing Agencies; Technical Amendments to Rule 19b-4 and Form 19b-4 Applicable to All Self-Regulatory Organizations, SEC Release #: 34-67286

Summary: In accordance with Section 763(a) of the Dodd-Frank Act, the SEC is adopting rules under the Exchange Act to specify the process for a registered clearing agency's submission for review of any security-based swap, or any group, category, type or class of security-based swaps, that the clearing agency plans to accept for clearing, the manner of notice the clearing agency must provide to its members of such submission and the procedure by which the SEC may stay the requirement that a security-based swap is subject to mandatory clearing while the clearing of the security-based swap is reviewed. The SEC also is adopting a rule to specify that when a security-based swap is required to be cleared, the submission of the security-based swap for clearing must be for central clearing to a clearing agency that functions as a central counterparty. In addition, the SEC is adopting rules to define and describe when notices of proposed changes to rules, procedures or operations are required to be filed by designated financial market utilities in accordance with Section 806(e) of Title VIII of the Dodd-Frank Act and to set forth the process for filing such notices with the SEC. Finally, the SEC is adopting rules to make conforming changes as required by the amendments to Section 19(b) of the Exchange Act contained in Section 916 of the Dodd-Frank Act.

Dates:Effective Dates: [INSERT DATE 30 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER] for §§240.19b-4(n), 19b4(o), 3Ca-1, 3Ca-2 and the amendments to §§240.19b-4(a), (b), (i), (j), (k), (l) and (m). December 10, 2012 for all amendments to Form 19b-4.Compliance Dates: [INSERT DATE 30 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER] for §§240.19b-4(n), 3Ca-1, 3Ca-2 and the amendments to §§240.19b-4(a), (b), (i), (j), (k), (l) and (m). December 10, 2012 for all amendments to Form 19b-4. The compliance date for §240.19b-4(o) is discussed in the section of the release titled "II.G. Effective and Compliance Dates".

Cross References: Dodd-Frank Sections 763, 806and 916; Exchange Act Rule 19b-4; Exchange Act Rules 3Ca-1 and 3Ca-2, Proposed SEA Rules Publication.