Trade Associations Request Extension of Comment Period for Security-Based Swap Rules

Several trade associations requested that the SEC extend the comment period for its proposed rules on capital, margin and segregation requirements for security-based swaps. The requests seek an additional 30 days to comment (comments are currently due on November 19, 2018).

As previously covered, the SEC reopened the comment period, and requested additional comments, on proposed new rules and amendments to (i) establish capital, margin and segregation requirements for security-based swap dealers and (ii) revise broker-dealer capital requirements relating to the use of security-based swaps. The extension requests came in two letters: one from SIFMA and the Institute of International Bankers, and the other from ISDA, the Investment Company Institute, the MFA and the Chamber of Commerce Center for Capital Markets Competitiveness. In requesting an extension, the trade associations cited, among other things, the long period between the initial comment period and the reopening, as well as the significance of the proposal for market participants.

Lofchie Comment: It is really difficult to see any justification for not extending the comment period by another month. The rule proposals have been sitting at the SEC for years. Not only are the proposals extremely complicated in their implementation, but much has changed since they were first proposed.

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