SIFMA Recommends Modifications to SEC-Proposed Rules on Security-Based Swap Dealers (with Lofchie Comment)

SIFMA recommended modifications to SEC-proposed rules on security-based swap dealers. SIFMA stated that its modifications are intended to harmonize the SEC-proposed rules with the CFTC guidance. SIFMA made clear the importance of consistency with already existing CFTC EBC Rules, because many swap dealers and their counterparties have already invested significant resources to comply with the CFTC guidance. Therefore, the recommendations are intended to speed implementation, minimize counterparty confusion and lead to lower costs for dealers and their counterparties.

Lofchie Comment: Firms have invested heavily to comply with this "guidance." This may be a point of pride for those who support this model "rule" but it should be instead one of embarrassment. It does not demonstrate that the CFTC's guidance was well-conceived; rather it demonstrates how to by-pass the rulemaking process successfully.

See: SIFMA Comment Letter Announcement; SIFMA's Comment Letter to SEC Regarding Proposed Rules on Security-Based Swap Dealers.Related News: SEC Adopts Registration Rule for Security-Based Swap Dealers (August 5, 2015).