The delay in the application of the securities laws to SBS allows SBS to continue to trade as they did prior to the enactment of Title VII of the Dodd-Frank Act, provided that the SBS:
Is a "security-based swap agreement" as defined prior to the enactment of Dodd-Frank, which requires that the swap agreement be entered into between eligible contract participants (ECPs) (as defined prior to Dodd-Frank) and is subject to individual negotiation.
Falls under the Securities Act definition of "Security" due solely to the expansion of that definition under Title VII of the Dodd-Frank Act.
This extension does not alter the IFR in any respect other than its expiration date. The following rules will remain in effect under the IFR extension:
Securities Act Rule 240 (17 C.F.R. § 230.240), which exempts SBS from all provisions of the Securities Act except for the antifraud provisions of Section 17(a) of the Securities Act, as long as the SBS:
is a SBS agreement, as defined prior to the effective date of Title VII; and
has been entered into by between ECPs.
Exchange Act Rules 12a-11 and 12h-1 (17 C.F.R. §§ 240.12a-11, 240.12h-1) which exempt any SBS offered or sold in reliance on Securities Act Rule 240 from the registration requirements of Exchange Act Sections 12(a) and 12(g).
Trust Indenture Act of 1939 (TIA) Rule 4d-12 (17 C.F.R. § 260.4d-12), which exempts any SBS offered or sold in reliance on Securities Act Rule 240 from the provisions of the TIA.