Corporate And Financial Weekly Digest - May 3, 2013

Edited by Robert Weiss and Gregory Xethalis

DERIVATIVES

SEC Issues Proposal Regarding Cross-Border Security-Based Swap Activities

On May 1, the Securities and Exchange Commission proposed rules and interpretive guidance with respect to cross-border security-based swap activities. Under this proposal, the requirements of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act would generally apply to any security-based swap transaction entered into with a US person or otherwise conducted within the United States. For this purpose, a US person would include natural persons residing in the United States, entities organized or incorporated or having their principal place of business in the United States and accounts of US persons. Further, a transaction would be conducted in the United States if it is solicited, negotiated, executed or booked within the United States, regardless of the location of the counterparties to the transaction.