SEC Makes Permanent Certain Exemptions Associated With Security-Based Swap Activities

The SEC extended, and granted on a permanent basis, certain exemptions from Exchange Act requirements related to security-based swap activity.

The new Order extends relief initially granted in 2011 and most recently extended in 2018. The SEC also ordered, on a permanent basis, that:

• security-based swap transactions between eligible contract participants are exempt from the definition of "penny stock" set forth in Exchange Act Section 3(a)(51) and Rule 3a51-1; and
• security-based swaps are exempt from the definition of "municipal securities" in Exchange Act Section 3(a)(29).

The SEC declined to grant relief on two points where additional relief was requested by SIFMA. The SEC said it would not address: