Federal Register #S7-2026-38

SEC Seeks Comments on Potential Increase to Rule 18a-10 Alternative Compliance Threshold

The Securities and Exchange Commission is seeking public input on a possible change to a financial-regulation threshold, not soliciting products or services. - Government agency: U.S. Securities and Exchange Commission (SEC). - Request: Comments on whether to raise the Rule 18a-10 alternative compliance mechanism threshold from $50 billion to $100 billion, or set another amount. - Party requesting the change: Mizuho Capital Markets LLC (MCM), a firm registered as both a swap dealer and a security-based swap dealer. - Context: Eligible stand-alone security-based swap dealers that are also registered swap dealers may use specified Commodity Futures Trading Commission requirements instead of certain SEC requirements. MCM says its security-based swap activity is limited relative to its broader derivatives business and that a higher threshold could reduce duplicative compliance costs while maintaining oversight and financial safeguards. - Input sought: Views on MCM’s rationale, the effects of a higher threshold on security-based swap and broader securities markets, and whether another threshold would be appropriate. - Procurement items: No products, services, quantities, or part numbers are requested.

Description

The Securities and Exchange Commission is seeking comments on a potential increase to the maximum fixed-dollar amount under Rule 18a-10’s alternative compliance mechanism from $50 billion to $100 billion. The mechanism allows eligible stand-alone security-based swap dealers, also registered as swap dealers, to comply with specified Commodity Futures Trading Commission requirements instead of certain SEC requirements. Mizuho Capital Markets LLC requested the increase, and the Commission invites comments on the request and the potential market effects. Comments are due December 2, 2026.

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