SEC to Vote on Security-Based Swap Conduct Rule

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By Rob Tricchinelli

March 24 — The Securities and Exchange Commission will vote March 30 on adopting a rule that lays out conduct standards for security-based swap dealers.

The rule, proposed in November 2011, would require those dealers and major security-based swap participants to communicate with counterparties in good faith about risks, conflicts of interest, clearing and other matters .

At the same open meeting, the agency will also decide whether to seek comment on updating its Regulation S-K disclosure regime.

Dodd-Frank Details

The swap dealers rule is required under Section 764 of the Dodd-Frank Act. The comment period on the rule was reopened in mid-2013.

The Commodity Futures Trading Commission adopted related rules in February 2012.

The SEC has jurisdiction over security-based swaps but the CFTC oversees other types.

Regulation S-K

Regulation S-K outlines public company disclosures such as registration statements, annual reports and tender offers. It is a companion to Regulation S-X, which governs company financial statements.

Revisiting Regulation S-K is part of a broader disclosure effectiveness review. The Reg S-K move was forecast earlier this year when a Division of Corporation Finance official said modernizing disclosures was a “big, central” project .

The SEC sought comment in October on how to update Reg S-X .

To contact the reporter on this story: Rob Tricchinelli in Washington at

To contact the editor responsible for this story: Phyllis Diamond at