SEC Adopts Rules to Combat Fraud, Manipulation, and Deception in Security-Based Swaps Market

The Securities and Exchange Commission (SEC) today adopted rules designed to protect investors and market integrity from fraud, manipulation, and deception in connection with security-based swap transactions. The antifraud and anti-manipulation rule was created to prevent any misconduct resulting from the purchase or sale of security-based swaps, as well as attempts to induce such purchases or sales. Additionally, the SEC adopted a rule to protect the independence and objectivity of the CCO (Chief Compliance Officer) of security-based swap dealers and major security-based swap participants. This rule seeks to ensure that the CCO is not unduly influenced by factions outside of their employer. These actions are intended to safeguard investors and maintain fairness in the securities-based swap markets.