SEC Establishes Internal "Joint Venture" on SBS Regulation and Oversight

The SEC established a "Security-Based Swaps Joint Venture" ("joint venture") among several divisions and offices to coordinate operations relating to security-based swap ("SBS") regulation and the oversight of SBS entities. The joint venture will be co-led by Division of Examinations Acting Assistant Director Vivi Mazarakis and Office of Derivatives Policy (within the Division of Trading and Markets) Assistant Director Carol McGee.

The Division of Enforcement, the Division of Economic Risk and Analysis, the Office of International Affairs and the Office of the Chief Data Officer staff will also participate in the joint venture. The SEC stated that the joint venture will be a key part of the agency's SBS market regulatory and oversight efforts, and is intended to position the agency to successfully examine SBS transaction data for regulation purposes and implement the Dodd-Frank Title VII SBS regulatory regime. The SEC noted that the joint venture will assist SBS dealers with their November 2021 registration, capital, margin and segregation requirements (see coverage of the registration timeline).