SEC Staff Permits Delay of Annual Reports by Non-Bank SBSDs

The SEC Division of Trading and Markets provided no-action relief to extend deadlines for certain security-based swap dealer's ("SBSD") filing reports and reviews pursuant to SEC financial responsibility and risk management requirements. The relief relates to reports required by Rule 15c3-4 ("Internal Risk Management Control Systems for OTC Derivatives Dealers"), Rule 18a-1 ("Net Capital Requirements"), and Rule 18a-7 ("Reports to Be Made by Certain Security-Based Swap Dealers").

The relief applies to non-bank and non-broker-dealers that registered as SBSDs in 2021 and permits the relevant firms to include the "stub" period after registration in 2021 in the relevant 2022 reports. The relief does not extend to firms that were registered OTC derivatives dealers prior to SBSD registration, other than the requirement under 18a-7 for an annual compliance report or exemption report, as applicable.