On June 21, the Securities and Exchange Commission adopted a package of new rules and rule amendments to establish capital, margin and segregation requirements under Title VII of the Dodd-Frank Act.

The new rules address the following areas:

• Capital requirements for security-based swap dealers (SBSDs) and major security-based swap participants (MSBSP), for which there is not a prudential regulator (nonbank SBSDs and MSBSPs).
• Capital requirements for broker-dealers that trade security-based swaps or swaps and are not registered as an SBSD or MSBSP.
• Minimum net capital requirements for broker-dealers that use internal models to compute net capital.
• Margin requirements for nonbank SBSDs and MSBSPs with respect to non-cleared security-based swaps.
• Segregation requirements for SBSDs and stand-alone broker-dealers for cleared and non-cleared security-based swaps.

The new rules also amend the SEC’s existing cross-border rule to provide a mechanism for substituted compliance with respect to the capital and margin requirements for foreign SBSDs and MSBSPs.

The SEC’s press release is available here.