SEC Rule 18a-7(a)(1)

This rule applies to security-based swap dealers and major security-based swap participants.

It requires these firms to file monthly reports with the SEC.

These reports must be filed on a timely basis to ensure that the SEC receives current and accurate information about the financial activities and condition of these entities.

For security-swap dealers that have been authorized by the SEC to compute net capital this includes reports on:

• market risk
• daily intra-month value at risk
• aggregate value at risk
• credit risk
• other regular risk reporting
• a report on the number of business days for which daily net trading loss exceeded the corresponding daily VaR
• internal model backtesting results