Week InAdvance: February 8, 2016

On Wednesday, the Securities and Exchange Commission will consider adopting a rule that would allow overseas banks to arrange swaps transactions in the U.S. without them counting toward thresholds that trigger registration and other Dodd-Frank Act requirements. The SEC proposed rule would let overseas-based swaps dealers use U.S. personnel to set up trades without the need to comply with risk reduction and transparency measures. The counting-requirements rule would apply to single securities or narrow indexes, which make up about 5 percent of the swap market. "Counterparty credit risk associated with these transactions resides primarily outside the United States," the agency said in their April 2015 proposal summary.

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