The SEC is considering new rules that would require
public position reporting and other requirements for security-based
swaps.
On December 15, 2021, the SEC proposed three rules under the Securities
Exchange Act to address misconduct and promote
transparency in the security-based swaps ("SBS") markets.
The proposed rules would expand the scope of antifraud rules,
prohibit certain attempts to influence an SBS dealer's
("SBSD") chief compliance officer ("CCO"), and
require disclosure of certain large SBS positions. Comments are due
45 days after publication in the Federal Register.
Expanded Antifraud and Anti-Manipulation Rules
While the scheme liability provisions of Rule 10b-5 have been an
effective tool for the SEC in policing fraud and manipulation in
the securities markets, they have been less effective in the SBS
markets and, in particular, the credit default swap
("CDS") market. One reason for this is that
certain activities that
have concerned regulators
