On December 18, 2020, the Securities and Exchange Commission announced the creation of a joint venture among multiple SEC divisions and offices to coordinate roles related to the regulation of security-based swaps (SBS) and provide oversight of entities that will be required to register with the SEC (SBS entities). The SBS joint venture will be led by the Division of Examinations and the Division of Trading and Markets and will involve participation of staff from across the agency, including the Division of Enforcement, the Division of Economic Risk and Analysis, the Office of International Affairs and the Office of the Chief Data Officer.
In December 2019, the SEC adopted final rule amendments to effect a comprehensive SBS regulatory regime. As a result, beginning in November, SBS entities will be required to register with the SEC and be subject to certain regulatory requirements, including capital, margin and segregation. SBS entities will also have transaction reporting obligations. The SBS joint venture is intended to help position the SEC to effectively oversee the SBS market and monitor SBS transaction data for regulatory purposes.
The SEC press release is available here.