SEC Implements Rules for Security-Based Swap Execution Facilities

The Securities and Exchange Commission (SEC) has adopted new Regulation SE to establish a registration and regulation framework for security-based swap execution facilities (SBSEFs). This move aligns the SEC's regime closely with the Commodity Futures Trading Commission's (CFTC) rules for swap execution facilities, aiming to increase transparency and integrity in the security-based swap market. The adoption addresses trade execution requirements for security-based swaps, cross-border application, conflict of interest mitigation, and promotes consistency with existing rules. Entities meeting the definition of SBSEF can apply for registration within 180 days of the effective date of the rules.