US Securities And Exchange Commission Issues Final Rules Regarding The Application Of Security-Based Swap Intermediary Definitions To Cross-Border Security Based Swap Activity

Keywords: SEC, Dodd-Frank Act, cross-border rules, security-based swaps,

The US Securities and Exchange Commission ("SEC") has adopted final rules (the "Cross- Border Rules") regarding the cross-border application of certain security-based swap ("SBS") provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").¹

The Cross-Border Rules: (i) define the term "US person" and indicate which SBS transactions a non-US SBS participant should include in its SBS dealer ("SBSD") and major SBS participant ("MSBSP") registration threshold calculations; (ii) establish the procedural rules for market participants and non-US regulators to request that the SEC determine that another jurisdiction's SBS rules are comparable to the SEC's rules and permit market participants in that jurisdiction to rely on that jurisdiction's SBS rules via substituted compliance when acting in the jurisdiction; and (iii) generally define the scope