Securities, Commodities, and Exchanges: SEC Proposes New Dodd-Frank Rules

On November 3, the Securities and Exchange Commission (SEC) unanimously approved two new proposed rules pursuant to provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). One proposed rule, according to the SEC release, would "help prevent fraud, manipulation, and deception in connection with security-based swaps." It would do so by ensuring "that market conduct in connection with the offer, purchase or sale of any security-based swap is subject to the same general anti-fraud provisions that apply to all securities," and by explicitly reaching "misconduct in connection with ongoing payments and deliveries under a security-based swap." Comments on this proposed rule may be filed online.

The other proposed rule, according to the SEC release, would establish "a whistleblower program to reward individuals who provide the agency with high-quality tips that lead to successful enforcement actions." Comments on this proposed rule may be filed online.