The SEC Adopts Security-Based Swap Rules Governing Capital, Margin And Segregation

I. INTRODUCTION

On June 21, 2019, the Securities and Exchange Commission (SEC or Commission) adopted a package of rules and rule amendments (Rules) that set forth the capital, margin and segregation requirements for security-based swap dealers (SBSDs) and major security-based swap participants (MSBSPs). As discussed below, these rules establish capital and margin requirements for nonbank SBSDs and segregation requirements for SBSDs.

The Rules will go into effect 60 days after publication in the Federal Register. The compliance date for the Rules, however, is 18 months after the later of (1) the effective date of the final rules establishing recordkeeping and reporting requirements for SBSDs or (2) the effective date of the final rules addressing the cross-border application of security-based swap requirements.