Exchange Act Substituted Compliance Applications for Security-Based Swap Markets

Substituted compliance is a mechanism that allows the Commission to determine that certain participants in U.S. security-based swap markets may satisfy certain requirements under the Securities Exchange Act of 1934 (“Exchange Act”) and the rules and regulations thereunder by complying with comparable non-U.S. requirements.

Substituted Compliance under Rule 3a71-6

Rule 3a71-6 under the Exchange Act permits the Commission to determine that registered non-U.S. security-based swap dealers and registered non-U.S. major security-based swap participants may satisfy certain requirements under Exchange Act section 15F and the rules and regulations thereunder by complying with comparable non-U.S. requirements.

Staff Guidance

To assist potential applicants for substituted compliance under Rule 3a71-6, staff has prepared guidance regarding applications for substituted compliance:

• Staff Guidance — Elements of an Application for Substituted Compliance
• Staff Guidance — Information Regarding Foreign Regulatory Requirements for Substituted Compliance Applications
• Staff Questionnaire — Information Regarding Foreign Supervisory Compliance and Enforcement Programs for Substituted Compliance Applications

Substituted Compliance under Rule 908(c)

Rule 908(c) under Regulation SBSR permits the Commission to determine that participants in U.S. security-based swap markets may satisfy the security-based swap reporting and public dissemination requirements under Exchange Act sections 13(m) and 13A and the rules and regulations thereunder by complying with comparable non-U.S. requirements.

Submission of Applications for Substituted Compliance

Rule 0-13 under the Exchange Act describes the procedures for seeking a substituted compliance determination under Rule 3a71-6 and/or Rule 908(c). An application must be submitted to the Office of the Secretary either in paper or electronic format.

Prior to submitting an application, potential applicants are encouraged to contact the staff at derivativespolicy@sec.gov or +1 (202) 551-5870.

Applications for a substituted compliance determination submitted on paper must be sent to:

U.S. Securities and Exchange Commission
Office of the Secretary
100 F Street NE
Washington, DC 20549-1090

Applications for a substituted compliance determination submitted electronically must be sent to:

SubstitutedComplianceApplications@sec.gov

Substituted Compliance Applications Submitted to the Commission

• France  
  • Application of Autorité des Marchés Financiers and Autorité de Contrôle Prudentiel et de Résolution
    (December 9, 2020)
  • Notice and Proposed Order
    (December 22, 2020)
  • Reopening of Comment Period for Notice and Proposed Order
    (April 5, 2021)
• Germany 
  • Application of Bundesanstalt für Finanzdienstleistungsaufsicht
    (November 6, 2020)
  • Notice and Proposed Order
    (November 9, 2020)
  • Final Order
    (December 22, 2020)
  • Substituted Compliance Memorandum of Understanding
    (December 18, 2020)
• United Kingdom 
  • Application of the Financial Conduct Authority
    (March 19, 2021)
  • Notice and Proposed Order
    (April 5, 2021)

* Information regarding listed jurisdiction applications under rule 0-13 is available here.