SEC Proposes Anti-Fraud Rule For Swaps

Law360, New York (November 4, 2010, 2:52 PM EDT) -- The U.S. Securities and Exchange Commission has released a proposed rule to combat fraud, manipulation and deception in securities-based swaps, part of the broader package of derivative reforms passed this year in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

SEC commissioners voted unanimously on Wednesday to propose the new rule, which is modeled after the SEC's broader anti-fraud statutes governing securities markets.

The Dodd-Frank Act, signed into law in July, gives the SEC jurisdiction over security-based swaps, generally defined as swaps based on a...
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