SEC Provides Temporary Relief: Title VII Will not go Into Full Effect on July 16
The Securities and Exchange Commission has issued guidance as to which of the Title VII requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act will apply to security-based swap transactions as of July 16, the effective date of Title VII. It also granted temporary relief to market participants from compliance with certain requirements.
The SEC’s announcement makes clear that all of Title VII’s requirements applicable to security-based swaps will not go into effect on July 16. The Commission’s action also grants temporary relief from compliance with most of the new Exchange Act requirements that would otherwise apply on July 16.
Title VII is the portion of the Dodd-Frank Act that establishes a comprehensive framework for regulating OTC derivatives. In particular, it authorizes the Commission to regulate “security-based swaps” while also authorizing the CFTC to regulate other swaps. The portion of Title VII referred to as Subtitle B, which addresses the new regulatory regime for security-based swaps, generally will take effect on July 16 (360 days after the date of the Dodd-Frank Act’s enactment).
Although the guidance and temporary relief are now in effect, the Commission is seeking input from the public on today’s actions. Public comments should be received by July 6, 2011.
A complete list of the Commission’s work implementing the Dodd-Frank Act is available on the SEC website.
To read more on the guidance and temporary relief regarding security-based swap provisions of Dodd-Frank Act, please click here.