SEC Capital and Margin Rules for Swap Dealers and MSPs (with Very Small Lofchie Comment)

The SEC published a release setting out its proposed capital, margin and segregation requirements for firms that will be security-based swap dealers or major security-based swap participants.

Lofchie Comment: In light of the length and complexity of the release, I will give myself the weekend to say anything substantive. Certainly, the release asks numerous open-ended questions and seems a genuine attempt to solicit feedback on a broad range of difficult issues. In this regard, the SEC should be praised for directly confronting some of the issues that both regulators and market participants are raising most concern, such as whether the amount of margin required by all of the new rules is so high that it will do damage to the economy.

View release in full here (links externally to SEC website).