{"id":5427,"date":"2013-04-03T00:00:00","date_gmt":"2013-04-03T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/04\/substituted_compliance_should"},"modified":"2022-05-03T15:32:56","modified_gmt":"2022-05-03T20:32:56","slug":"substituted-compliance-should","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/","title":{"rendered":"\u201cSubstituted Compliance\u201d Should Regulate Cross-Border Swaps, Says SEC Chairman Elisse Walter"},"content":{"rendered":"\n<p>According to Securities and Exchange Commission Chairman Elisse Walter, the best way to regulate global over-the-counter derivatives regulation is via \u201csubstituted compliance.\u201d Such an approach would let a market participant comply with domestic requirements in a certain area through compliance with comparable foreign regulation while also allowing the domestic regulator to keep applying specific policy requirements of local law when the foreign one fails to impose requirements or protections that compare. <\/p>\n<p>Per its Dodd-Frank Wall Street Reform and Consumer Protection Act Title VII mandate, the SEC intends to put forth a proposal on how to tackle cross-boarder issues. Although the Commission hasn\u2019t figure out how it will go forward with this proposal, Walter stressed that \u201csubstituted compliance\u201d could act as a \u201ca reasonable and necessary middle ground\u201d between making foreign participants abide by domestic regulation and widely recognizing foreign swap regimes. She believes that while efforting to give the maximum substituted compliance possible, properly tailored cross-border regulation would take care of the potentially significant regulatory gaps that are likely to exist between jurisdictions. <\/p>\n<p>Walter believes that regulators need to be participating in the world debate on how to cut down systemic risk. Also, noting that brokerage firms, investment advisers, and other market participants that the SEC oversees differs from traditional banking institutes, Walter cautioned that failure to identify these key differences ups the risk that there will be weaker financial institutions and less options for businesses looking for investment capital.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/\"  title=\"Continue Reading \u201cSubstituted Compliance\u201d Should Regulate Cross-Border Swaps, Says SEC Chairman Elisse Walter\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to Securities and Exchange Commission Chairman Elisse Walter, the best way to regulate global over-the-counter derivatives regulation is via \u201csubstituted compliance.\u201d Such an approach would let a market participant comply with domestic requirements in a certain area through compliance with comparable foreign regulation while also allowing the domestic regulator to keep applying specific policy [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760,3761,3963],"tags":[],"class_list":["post-5427","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-securities-and-exchange-commis","category-securities-law-and-regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u201cSubstituted Compliance\u201d Should Regulate Cross-Border Swaps, Says SEC Chairman Elisse Walter &#8212; Investor Lawyers Blog &#8212; April 3, 2013<\/title>\n<meta name=\"description\" content=\"According to Securities and Exchange Commission Chairman Elisse Walter, the best way to regulate global over-the-counter derivatives regulation is via &#8212; April 3, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"\u201cSubstituted Compliance\u201d Should Regulate Cross-Border Swaps, Says SEC Chairman Elisse Walter &#8212; Investor Lawyers Blog &#8212; April 3, 2013\" \/>\n<meta name=\"twitter:description\" content=\"According to Securities and Exchange Commission Chairman Elisse Walter, the best way to regulate global over-the-counter derivatives regulation is via &#8212; April 3, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; 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April 3, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"\u201cSubstituted Compliance\u201d Should Regulate Cross-Border Swaps, Says SEC Chairman Elisse Walter","datePublished":"2013-04-03T05:00:00+00:00","dateModified":"2022-05-03T20:32:56+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/"},"wordCount":334,"articleSection":["SEC Enforcement","Securities and Exchange Commission","Securities Law and Regulations"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/","url":"https:\/\/www.investorlawyers.com\/blog\/substituted-compliance-should\/","name":"\u201cSubstituted Compliance\u201d Should Regulate Cross-Border Swaps, Says SEC Chairman Elisse Walter &#8212; 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