Retrospective Review Comment on SEC’s Proposed Reporting Requirements for Swap Dealers, Participants, and Broker Dealers

From: Regulatory Studies Center/George Washington University

By Mark Bigley, Summer Fellow

The George Washington University Regulatory Studies Center strives to improve regulatory policy through research, education, and outreach. As part of its mission, the Center conducts careful and independent analyses to assess rulemaking proposals from the perspective of the public interest. This comment on the Securities and Exchange Commission’s (“SEC” or “Commission”) proposed rule establishing recordkeeping and reporting requirements for security-based swap dealers (“SBSDs”), major security-based swap participants (“MSBSPs”), and broker-dealers does not represent the views of any particular affected party or special interest, but is designed to evaluate whether Commission’s proposal incorporates plans for retrospective review, pursuant to Executive Orders 13563 and 13579.


Title VII (“Title VII”) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Barack Obama in July 2010, brought about a new regulatory framework for securities and derivatives traded in over-the-counter (“OTC”) markets. The goals of Title VII are to improve the transparency of the OTC market, promote market integrity, and reduce risk. To implement Title VII, the Commission

is proposing recordkeeping, reporting, and notification requirements applicable to security-based swap dealers (“SBSDs”) and major security-based swap participants (“MSBSPs”), securities count requirements applicable to certain SBSDs, and additional recordkeeping requirements applicable to broker-dealers to account for their security-based swap and swap activities. The Commission also is proposing an additional capital charge provision that would be added to the proposed capital rule for certain SBSDs. Finally, the Commission is proposing technical amendments to the broker-dealer recordkeeping, reporting, and notification requirements.[1]

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