SEC proposes doubling ACM threshold for security-based swap dealers
The proposal would raise the Rule 18a-10 alternative-compliance limit from $50 billion to $100 billion, affecting all SBSDs that are also registered swap dealers.
On Oct 28 2026 the Securities and Exchange Commission issued notice FR Doc No 2026-22272 announcing a potential rule change. The notice follows a request submitted on Oct 26 2026 by Mizuho Capital Markets LLC (MCM) to increase the maximum fixed-dollar amount for the aggregate gross notional outstanding security-based swap positions that qualify a security-based swap dealer (SBSD) for the alternative compliance mechanism (ACM) under Rule 18a-10 from $50 billion to $100 billion.
Rule 18a-10 permits a stand-alone SBSD that is also a swap dealer and predominantly engaged in swaps to comply with CFTC capital, margin, segregation, recordkeeping and reporting requirements instead of the SEC's capital, margin, segregation, recordkeeping and reporting rules. Eligibility requires that the firm's aggregate gross notional SBS positions not exceed the lesser of a fixed-dollar ceiling or 10 % of the combined gross notional of its SBS and swap positions. The fixed-dollar ceiling was set at $250 billion for a three-year transition and then dropped to $50 billion, which remains in effect after the transition period.
The Commission notes that more than three years have elapsed since the compliance date, and the current ceiling is $50 billion. The notice cites the December 26 2025 aggregate SBS outstanding amount of approximately $7,265.144 billion as context for its analysis. Pursuant to Rule 18a-10(f)(2), the SEC is publishing the notice to solicit comments before any order is issued to adjust the ceiling.
MCM's request argues that its SBS activity is a minimal portion of its overall derivatives business - less than 0.25 % of total gross notional from 2022-2024 and 1.47 % of active trade count - and that only roughly $0.4 billion of its $2.0 billion tier-1 capital supports SBS activity. MCM also notes it is one of two stand-alone SBSDs operating under the ACM and contends that raising the ceiling would have a minimal impact on the broader SBS market while aligning with the design of Rule 18a-10.
The notice invites interested persons to submit comments, as required by Rule 18a-10(f)(2). The Commission has not indicated a deadline in the excerpt, but the comment period will run in accordance with standard Federal Register procedures.
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