SIFMA today issued the following statement from Ken Bentsen, Executive Vice President, following the announcement by the U.S. Securities and Exchange Commission of guidance as to which of the Dodd-Frank Title VII provisions will apply to security-based swap transactions as of July 16, the effective date of Title VII, and granted temporary relief to market participants from compliance with certain of those requirements:
“SIFMA welcomes the SEC’s guidance clarifying which of the Title VII requirements of the Dodd-Frank Act will apply as of the July 16th effective date of Title VII. The guidance appropriately defers substantially all of Title VII's requirements applicable to security-based swaps and provides temporary relief from most new Exchange Act requirements. SIFMA also looks forward to the additional guidance addressing issues related to securities-based swaps being defined as securities, which is expected next week. The Dodd-Frank Act creates an entire new legal framework and entails a complex rulemaking agenda. We encourage and appreciate the efforts of regulators to get it right and to ensure markets are not disrupted while this important rulemaking proceeds.”