On June 20, 2023, the SEC voted to reopen the comment period for its December 2021 proposal, Position Reporting of Large Security-Based Swap Positions, which provides the public an opportunity to comment on supplemental analysis and data added to the public comment file. The additional findings were compiled and released in a memorandum by the SEC’s Division of Economic and Risk Analysis (DERA). The proposed rule would require expeditious reporting to the SEC of any large security-based swap (SBS) positions that exceed certain thresholds. The original comment period for the proposed rule closed on February 4, 2022.
The proposed rule includes different reporting thresholds for SBSs connected to debt securities and SBSs connected to equity securities. Under the proposed rule, any person with an SBS position that exceeds its particular threshold would be required to promptly file with the SEC a schedule disclosing the following:
the applicable SBS position
positions in any security or loan underlying the SBS position
any other instrument relating to the underlying security or loan or group or index of securities or loans
Should the proposed rule be adopted, the SEC would make available to the public all disclosures received to enhance transparency and oversight in the SBS market.