SEC Proposes Rules For Cross-Border Security-Based Swap Transactions

On May 1, 2013, the Securities and Exchange Commission ("SEC") unanimously voted to propose rules and interpretive guidance to persons engaging in cross-border security-based swap transactions.¹ The rules and guidance are intended to apply to transactions that occur partially within the United States and partially outside the United States. The proposal also addresses when certain entities, including security-based swap dealers and major security-based swap participants, and market infrastructures, including clearing agencies, execution facilities and data repositories, are required to register with the SEC. This client alert is designed to provide a high-level summary of some of the most significant aspects of a lengthy and extraordinarily complex document, and is not intended to be detailed or comprehensive.