Under the proposed rule, security-based swap dealers and major security-based swap participants, collectively known as SBS entities, would have to provide to their counterparties a trade acknowledgement detailing information specific to the transaction. The new rule, Rule 15Fi-1, is being proposed under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act which generally authorizes the SEC to regulate security-based swaps. Among other things, the new law gives the SEC the authority to establish standards for the confirmation and documentation of security-based swap transactions entered into by SBS entities. 

The proposed rule is another step in the SEC's continuing effort to increase the transparency of the security-based swap market. The proposed rule would require SBS entities to provide their counterparties with an electronic record containing information specific to the security-based swap transaction. 

In particular, it would require an SBS entity to:
- provide a trade acknowledgment to its counterparty in a security-based swap transaction within 15 minutes, 30 minutes or 24 hours of execution, depending on whether the transaction is executed or processed electronically;
- electronically process security-based swap transactions if the SBS Entity has the ability to do so; and
- have written policies and procedures in place that are reasonably designed to obtain verification of the terms outlined in the trade acknowledgment.

In addition, the proposed rule would:
-specify which SBS entity is responsible for providing the trade acknowledgment;
- permit an SBS entity to satisfy the requirements of the proposed rule by processing the transaction through the facilities of a registered clearing agency;
- identify the transaction details that must be included in the trade acknowledgement; and
-provide a limited exemption from the requirements of Rule 10b-10 under the Exchange Act for SBS Entities that are also brokers.

Public comments on the proposed rule should be received by the Commission within 30 days of publication in the Federal Register.

SEC proposal