“We may find we need to freshen up our rule set”: US regulators reflect on Archegos collapse

Bruce Bennett is quoted in Global Banking Regulation Review regarding the SEC’s rulemaking  on total return swaps and other security-based swaps. Bruce says the key question is whether those transactions constitute a swap party's beneficial ownership of the security that underlies the swap. “To date, the SEC's view has been that the answer to that question is no, but it is possible that the SEC will seek to change that view,” he adds. “Alternatively, it could develop a position that mandates reporting of total return swap positions to the SEC, or disclosure publicly, without necessarily taking on the beneficial ownership question, so that market participants such as the prime brokerage arms of investment banks have better visibility as to the extent of a given client's exposure.”