The Archegos Rules: What the SEC’s security-based swap proposals mean for your business

In December 2021, the SEC proposed a series of rules that—if adopted—will dramatically affect how firms deploy security-based swaps in their equity and fixed income trading strategies. The compliance and enforcement risks are palpable, as Chairman Gensler and his team have made clear that the traditional distinction between owning securities and having economic exposure to them is no longer a complete one. This effort builds on the earlier (yet still recent) focus regulators have placed on so-called “manufactured credit events” involving credit default swaps.

Please join Peter Petraro, Brian Rabbitt and Josh Sterling of Jones Day for a practical look at these proposals and what they will mean for your business—from both a transactional perspective and the enforcement viewpoint of former senior federal regulators.