The Securities and Exchange Commission (SEC) has proposed detailed criteria which set out which regulatory requirements will apply when a transaction occurs partially within and partially outside the U.S. The proposed rules also detail when security-based
swap dealers, major security-based swap participants, and other entities — such as clearing agencies, execution facilities, and data repositories — must register with the SEC.
The proposal outlines a “substituted compliance” framework recognising that market participants may be subject to conflicting or duplicative compliance obligations in the global derivatives market. This is subject to the requirements of a foreign regulatory
regime having been determined by the SEC to achieve comparable regulatory outcomes.
The comment period for the proposed rules and interpretive guidance for cross-border security-based swap activities will occur for 90 days after they are published in the Federal Register.
RELATED LINK
http://www.sec.gov/news/press/2013/2013-77.htm