Proposed SEC Rule Regarding Security-Based Swaps

On September 11, the SEC published in the Federal Register a proposed rule on the treatment of certain communications involving security-based swaps and eligible contract participants. Under the proposed rule, the publication or distribution of price quotes relating to security-based swaps that may be purchased only by persons who are eligible contract participants and are traded or processed on or through a facility that either is registered as a national securities exchange or as a security-based swap execution facility, or is exempt from registration as a security-based swap execution facility pursuant to a rule, regulation, or order of the SEC, would not be deemed to constitute an offer, an offer to sell, or a solicitation of an offer to buy or purchase such security-based swaps or any guarantees of such security-based swaps that are securities for purposes of the registration requirements of the Securities Act. Comment are due November 10, 2014.