SEC Chair Gensler Discusses Swaps Risks and Regulation and Proposed Rules for Security‑Based Swap Execution Facilities

The SEC recently proposed new Regulation SE, which would institute a registration and regulation regime for security-based swap execution facilities pursuant to the Dodd-Frank Act. The regime would largely mirror the regime the CFTC adopted for CFTC-regulated swap execution facilities. Fittingly, in a recent speech at the annual meeting of the International Swaps and Derivatives Association, SEC Chair Gary Gensler discussed the risks posed by the swaps markets; the SEC’s implementation of Dodd-Frank swaps reforms; and issues involving the intersection of derivatives and both crypto assets and complex financial products. This article outlines the key takeaways from Gensler’s remarks and the contours of proposed Regulation SE. See our two-part coverage of a fireside chat with Gensler: “Three Key Disclosure Areas” (Nov. 18, 2021); and “Reporting; Voting and Proxies; Individual Accountability; and Market Structure Issues” (Dec. 2, 2021).

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