US Securities And Exchange Commission Issues Non-Enforcement Position Regarding Security-Based Swap Business Conduct Rules

On October 31, 2018, the Securities and Exchange Commission issued a non-enforcement position providing market participants, for a five-year period, with alternative means of compliance with certain business conduct standards for security-based swap dealers and major security-based swap participants (SBS Entities).

Although the SEC has adopted a set of business conduct standards for SBS Entities, compliance with those rules is not yet required, pending finalization of certain other rules and implementation of registration of SBS Entities. The SEC issued the statement, in advance of implementation, to address market participants' concerns regarding compliance difficulties presented by differences between the SEC's business conduct standards and those of the CFTC, which are applicable to swap transactions with swap dealers.