Business Group Eyeing SEC Rules on Security-Based Swaps

As the Securities and Exchange Commission finalizes regulations for security-based swaps in international markets, an alliance of business groups is keeping a close watch on companies' bottom lines. In a letter [PDF] sent Wednesday to the SEC, the Coalition for Derivatives End-Users said it is worried that the agency may bring extra costs and burdens -- but no benefits -- to companies involved with the cross-border transactions. The alliance—which includes the U.S. Chamber of Commerce, Business Roundtable, National Association of Manufacturers, Financial Executives International, National Association of Corporate Treasurers, and Agricultural Retailers Association—represents pension plans and mutual life insurance companies, among other financial end-users, as well as nonfinancial end-users that use derivatives. The SEC in May proposed rules on cross-border security-based swaps under the Dodd-Frank Wall Street Reform and Consumer Protection Act and asked for feedback on all Dodd-Frank rules the agency hasn't finalized. This agency's work, which is limited to securities-related swaps, is separate from the activities of the Commodity Futures Trading Commission on cross-border swap transactions. Affiliate publication Corporate Counsel has more.

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