SEC Issues Substituted Compliance Determination for France

The Securities and Exchange Commission today announced the approval of a substituted compliance determination order with respect to security-based swap dealers and major security-based swap participants (SBS Entities) subject to regulation in the French Republic (the French Order). This is the first determination that addresses substituted compliance in connection with the Commission's capital and margin requirements. "Friday’s action reflects the latest of the Commission's continued efforts to stand up Congressional mandates under Title VII of the Dodd-Frank Act and prepare for the registration of security-based swap dealers this fall," said SEC Chair Gary Gensler. "In issuing the determination order, the Commission was guided by our commitment to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation." The French Order, which was approved Friday, provides that certain French firms that are registered with the Commission as SBS Entities conditionally may satisfy certain requirements under the Securities Exchange Act of 1934 (Exchange Act) by complying with comparable French…