The Securities and Exchange Commission plans to propose measuresdetermining when U.S. rules apply to cross-border swap trades amidcalls from foreign counterparts to limit the reach of Dodd-FrankAct oversight.

SEC commissioners meeting in Washington today probably willapprove a 1,000-page proposal that could influence how globalregulators address rule differences while working to reduce riskand increase transparency in the swaps market. The SEC is writingrules for equity and some credit-default swaps, while the CommodityFutures Trading Commission is the predominant U.S. regulator forthe $639 trillion global market.

“Its influence will clearly not be based on the relative size ofthe security-based swap market that is supervised by the SEC,”Edward J. Rosen, New York-based partner at Cleary Gottlieb Steen& Hamilton LLP, said of the SEC rules in an e- mail. “Anysignificant impact that this guidance will have will dependentirely on the extent to which it is regarded by the broader U.Sand foreign regulatory community as having sensible andwell-grounded policy and intellectual underpinnings.”

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