SEC Expands Dealer Rule To Proprietary Traders, Private Funds

Val Dahiya spoke to Law360 about the U.S. Securities and Exchange Commission’s (SEC) recently passed rules that now include proprietary trading firms and some hedge funds in its definition of securities dealers, expanding the agency's oversight authority.

Val mentioned that some uncertainty remains as to just which entities will be required to register under the new rules and whether a lawsuit follows from the vote could depend on how aggressively the SEC interprets the new definition.

"That's a certain segment of market participants that the SEC wasn't necessarily intending to capture, but you could unintentionally capture those kinds of entities," said Val.

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