December 13, 2010
Section 763(g) of the Dodd-Frank Act authorizes the Commission to adopt rules to prevent fraud, manipulation, and deception in connection with security-based swaps. Specifically, Section 763(g) adds new subparagraph (j) to Section 9 to make it unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any facility of any national securities exchange, to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security-based swap, in connection with which such person engages in any fraudulent, deceptive, or manipulative act or practice, makes any fictitious quotation, or engages in any transaction, practice, or course of business which operates as a fraud or deceit upon any person.
With new scandals arising every day, nationally and worldwide, the Dodd-Frank Act is a beneficial resolution that clarifies the previous laws regarding the policies for fraud and deceit. This clarifies the discrepancy of an indirect relationship to fraud and deceit as well, that it is indeed a wrongdoing. I believe that Section 763(g) needs to include relevant exceptions to the policy, if any. People always find a way to make loopholes: this Act needs to close off any potential for this occurrence.
This Act needs to be as straight forward as possible.
However, it is a great improvement. I look forward to seeing what else is in the future to continue to hinder any possibilities for fraud or deceit.