The United States’ corporate regulator is looking to mandate the registration of security-based swap executors, according to a Reuters report.
Under the proposals of the Securities and Exchange Commission (SEC), swaps execution facilities will be required to register and give the agency more authority in security-based swaps in a bid to push transparency.
The proposed measures will not be applicable to those already registered with the corporate regulator as a clearing agency, along with firms who have operations designed to boost valuation accuracy.
Dubbed the Regulation Swaps Execution, the proposals seek to harmonize the SEC’s rules seek to harmonize similar guidelines by the Commodities Future Trading Commission, which has oversight on all financial contracts.
Chairman Gary Gensler said the proposal would boost transparency among buyers and sellers, and would protect investors with pre-trade pricing, and reduce risks in the market.