By Mike Kentz
June 11, 2016, IFR
The Securities and Exchange Commission has included language in a rule-making finalized last week that some market participants say undermines the point of the entire rule-making itself.
The SEC will allow firms transacting in security-based swaps to comply with a new rule governing trade affirmation procedures via a process known as “negative affirmation”. Under the new rule, when one firm reaches out to another to confirm trade details but does not receive a response, the trade is still considered “affirmed” and is pushed through.
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