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SEC Rule 15Fh-3

Outlines the business conduct requirements for security-based swap dealers and major security-based swap participants, including verification of counterparty status, disclosure of material information, and supervision of business activities.

Rule Overview

Jurisdiction: United States

Regulator: SEC

Topic: Supervision

Overview
Further Reading

The rule requires security-based swap dealers and major security-based swap participants to verify the eligibility and special entity status of counterparties, disclose material information about security-based swaps, and provide daily marks and other disclosures, including clearing rights, to counterparties.

The rule also requires these entities to establish and maintain written policies and procedures for supervising their business activities, including the review of transactions and communications with counterparties.

Additionally, the rule imposes requirements for recommendations of security-based swaps or trading strategies, fair and balanced communications, and maintenance of written supervisory procedures.

Further Reading

Observations Related to Security-Based Swap Dealers Go to https://www.sec.gov/files/risk-alert-sbsd-011023.pdf