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SEC Finalizes Swap Dealer Definition Rule

U.S. securities regulators on Wednesday finalized long-awaited rules that will dictate which companies will be deemed swap dealers, a tag that will subject them to costly capital, margin and business conduct requirements. requirements.

U.S. securities regulators on Wednesday finalized long-awaited rules that will dictate which companies will be deemed swap dealers, a tag that will subject them to costly capital, margin and business conduct requirements.

The Securities and Exchange Commission voted to adopt the rules in a 5-0 vote. The rules are a main provision in the Dodd-Frank Wall Street reform law, which gave the SEC and Commodity Futures Trading Commission broad new authority to regulate the $700 trillion over-the-counter derivatives market.

The swap dealer rule is a joint rule with the CFTC, which is also slated to finalize the rules on Wednesday. S EC Chairman Mary Schapiro said the final rule aims to only capture the companies that truly deal in derivatives, sparing mutual funds and pension funds from the new regulations. (Reporting By Sarah N. Lynch; Editing by Gerald E. McCormick)

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