Statement at Open Meeting on Final Rules Regarding Application of Title VII Dealer De Minimis Requirements to Security-Based Swap Dealing Activity in the United States

Commissioner Michael S. Piwowar

Washington D.C.

I am pleased to support today’s rulemaking, and I want to join my fellow Commissioners in commending the staff for their excellent work. 

This release represents the third time the Commission has addressed the question of how the security-based swap dealer definition in Title VII of the Dodd-Frank Act applies to the U.S. activities of non-U.S. dealers.  In this case, I think we can truly say that the third time is the charm. 

The fact that we undertook two successive proposals with related rounds of public comment before adopting this rulemaking demonstrates both the complexity of the security-based swap market, and our commitment to getting this rule right, rather than just getting it done.  Although not all market participants will agree with every decision we have made, the final rule itself is both well-thought and well-supported by the analysis in the release.

Despite the relatively narrow subject matter of today’s rulemaking it is a vital part of the overall Title VII framework.  Specifically, it provides market participants with clear guidance regarding which security-based swap transactions to count when determining whether they must register as a security-based swap dealer.  As such, it is an extremely important piece of the elaborate puzzle that is the Title VII regulatory regime, and will help global derivatives dealers decide how best to structure their businesses in order comply with our rules.

This release is also a great example of consensus-based rulemaking.  There are a number of Title VII rules outstanding that I believe could also gain unanimous support.  I look forward to working with both of my fellow Commissioners to build on the momentum that this rulemaking gives us in the Title VII space, and hope to be part of many more unanimous votes on similarly non-controversial rules in the future.

Once again I would like to thank staff across the agency for their efforts on today’s rulemaking, and I have no questions.

Last Reviewed or Updated: Feb. 10, 2016