SEC Adopts Rules to Prevent Fraud in Connection with Security-Based Swaps Transactions and Prevent Undue Influence over CCOs
The SEC adopted new rules to prevent fraud, manipulation, and deception in security-based swap transactions and to protect the independence of chief compliance officers.
The SEC has implemented regulations to prohibit misconduct in security-based swap transactions, including deceptive practices in purchasing or selling swaps. These rules also aim to safeguard the objectivity of chief compliance officers at security-based swap dealers and major participants. No specific individuals, dollar amounts, or criminal charges were cited as this is a regulatory adoption rather than an enforcement action.
The Securities and Exchange Commission (SEC) has adopted new rules designed to prevent fraud, manipulation, and deception within security-based swap transactions. These regulations target misconduct related to effecting, purchasing, or selling swaps, as well as any attempts to induce such transactions. Additionally, the Commission introduced a rule to protect the independence and objectivity of chief compliance officers (CCOs) at security-based swap dealers and major participants. SEC Chair Gary Gensler emphasized that these measures are critical for protecting investors and maintaining market integrity. The rules are intended to prevent undue influence over compliance oversight and mitigate risks to counterparties and reference entities. The final rules will become effective 60 days after their publication in the Federal Register.
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- person final rules
- person gary gensler
- agency sec chair gary gensler
- organization Securities and Exchange Commission
- Securities And Exchange Commission adopted rules to prevent fraud, manipulation, and deception in security-based swap transactions
- SEC Chair Gary Gensler said misconduct in the security-based swaps market harms counterparties and can affect reference entities and investors
- Adopted Rule is designed to prevent misconduct in connection with effecting, attempting to effect, purchasing, selling, or inducing security-based swap transactions
- Commission adopted rule to protect the independence and objectivity of the chief compliance officer of a security-based swap dealer or major security-based swap participant
- Final Rules will become effective 60 days after the date of publication of the adopting release in the Federal Register
The Securities and Exchange Commission today adopted rules to prevent fraud, manipulation, and deception in connection with security-based swap transactions and to prevent undue influence over the chief compliance officer (CCO) of security-based swap dealers and major security-based swap participants (SBS Entities). “Any misconduct in the security-based swaps market not only harms direct counterparties but also can affect reference entities and investors in those reference entities,” said SEC Chair Gary Gensler. “Given these markets’ size, scale, and importance, it is critical that the Commission protect investors and market integrity through helping prevent fraud, manipulation, and deception relating to security-based swaps. Today’s set of rules will do just that.” The antifraud and anti-manipulation rule adopted today is designed to prevent misconduct in connection with effecting any transaction in, or attempting to effect any transaction in, or purchasing or selling, or inducing or attempting to induce the purchase or sale of, any security-based swap. The rule takes into account the features fundamental to a security-based swap and will aid the Commission in its pursuit of actions that directly target misconduct that reaches security-based swaps. The Commission also adopted a rule to protect the independence and objectivity of the CCO of a security-based swap dealer or major security-based swap participant. The adopting release will be published in the Federal Register. The final rules will become effective 60 days after the date of publication of the adopting release in the Federal Register.
The Securities and Exchange Commission today adopted rules to prevent fraud, manipulation, and deception in connection with security-based swap transactions and to prevent undue influence over the chief compliance officer (CCO) of security-based swap dealers and major security-based swap participants (SBS Entities). “Any misconduct in the security-based swaps market not only harms direct counterparties but also can affect reference entities and investors in those reference entities,” said SEC Chair Gary Gensler. “Given these markets’ size, scale, and importance, it is critical that the Commission protect investors and market integrity through helping prevent fraud, manipulation, and deception relating to security-based swaps. Today’s set of rules will do just that.” The antifraud and anti-manipulation rule adopted today is designed to prevent misconduct in connection with effecting any transaction in, or attempting to effect any transaction in, or purchasing or selling, or inducing or attempting to induce the purchase or sale of, any security-based swap. The rule takes into account the features fundamental to a security-based swap and will aid the Commission in its pursuit of actions that directly target misconduct that reaches security-based swaps. The Commission also adopted a rule to protect the independence and objectivity of the CCO of a security-based swap dealer or major security-based swap participant. The adopting release will be published in the Federal Register. The final rules will become effective 60 days after the date of publication of the adopting release in the Federal Register.