SEC finalizes standards for swap dealers
On April 13, the Securities and Exchange Commission adopted final rules establishing business conduct standards for swap dealers and major swap participants that are active in credit default swaps and other "security-based swaps." SEC Chair Mary Jo White said in a statement that the SEC rules were designed to be "broadly consistent" with the CFTC's business conduct rules and also drew on the existing requirements for broker-dealers. The business conduct rules cover how firms supervise their staff, the designation of a chief compliance officer and requirements to disclose certain information to counterparties. That information includes risks, incentives and conflicts of interest. The rules also establish additional requirements when dealing with "special entities" such as pension plans and local governmental bodies.
