On June 21, the Securities and Exchange Commission adopted a panoply of final rules dealing with the following aspects of the regulation of security-based swaps (SBS):
- Capital requirements for nonbank SBS Dealers (SBSDs) and Major SBS Participants (MSBSPs).
- Increased minimum net capital requirements for broker-dealers that use internal models to compute net capital (ANC broker-dealers).
- Capital requirements tailored to security-based swaps and swaps for broker-dealers that are not registered as an SBSD or MSBSP to the extent they trade those instruments.
- Margin requirements for nonbank SBSDs and MSBSPs with respect to non-cleared security-based swaps.
- Creation of a process for non-US SBSDs and MSBSPs to request substituted compliance with respect to the capital and margin requirements.
- A requirement that nonbank SBSDs establish internal risk management controls compliant with Rule 15c3-4.