SEC Pushes Oversight Of Security Swap Clearing Agencies

Law360, Los Angeles (March 12, 2014, 8:33 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday voted to propose new rules to enhance the oversight of so-called clearing agencies, which act as middlemen between the parties to a securities transaction, to avoid risks associated with complex transactions like security-based swaps.

The SEC said the clearing agencies perform a range of services important for the effective operation of the securities markets, including ensuring that funds and securities are correctly transferred between parties and at times assuming the risks of a party defaulting on a transaction....
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