Capital, Margin, and Segregation Requirements for Security-Based SDs and MSPs, and Capital Requirements for Broker-Dealers; Proposed Rule (SEC – Fed. Reg. Version)

Posted on by

In accordance with Dodd-Frank, the SEC is proposing capital and margin requirements for security-based swap dealers (“SBSDs”) and major security-based swap participants (“MSBSPs”), segregation requirements for SBSDs, and notification requirements with respect to segregation for SBSDs and MSBSPs.  The SEC also is proposing to increase the minimum net capital requirements for broker-dealers permitted to use the alternative internal model-based method for computing net capital.

The SEC’s proposed rules are intended to accomplish the following:

  • Set minimum capital requirements for security-based swap dealers and major security-based swap participants. 
  • Establish margin requirements for security-based swap dealers and major security-based swap participants with respect to non-cleared security-based swaps. 
  • Establish segregation requirements for security-based swap dealers and notification requirements with respect to segregation for security-based swap dealers and major security-based swap participants.

Comments Due: January 22, 2013.

View release here: 77 FR 70213.
See also: Press Release and FAQ; The Regulatory Regime for Security-Based Swaps (graphic).