In her June 29, 2011 comments, SEC Chairman Mary Shapiro laid out proposed rules for over-the-counter swaps dealers, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition to mandating more and better communication about potential conflicts of interest (and related pay to play problems) for special entities such as pension plans, financial institutions will have to "provide the counterparty with information concerning the daily mark for the security-based swap." For ERISA plans, security-based swap dealers would likely have to transact via independent agents of the plan sponsors who in turn would be deemed fiduciaries.

Interested persons can respond to the U.S. Securities and Exchange Commission before August 29, 2011. Rules proposed by the U.S. Commodity Futures Tradign Commission ("CFTC") have generated a range of comments. One in particular caught my eye about the need to provide valuation numbers as well as scenario analysis results in the context of a pension plan's portfolio. Given the increased use of swaps by institutional investors around the world to manage risk, this notion has appeal.

Suggested links for readers include the following:

• "Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants," U.S. Securities and Exchange Commission, June 29, 2011;
• Comment Letters on CFTC Website Relating to "Business Conduct Standards for Swap Dealers and Major Swap Participants With Counterparties," Closing Date on February 2, 2011; and
• Form to submit comments to the SEC about business conduct standards for security-based swap dealers and major security-based swap participants.