17 CFR § 242.832 - Application of the trade execution requirement to cross-border security-based swap transactions.

---
identifier: "/us/cfr/t17/s242.832"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "17 CFR § 242.832 - Application of the trade execution requirement to cross-border security-based swap transactions."
title_number: 17
title_name: "Commodity and Securities Exchanges"
section_number: "242.832"
section_name: "Application of the trade execution requirement to cross-border security-based swap transactions."
chapter_name: "SECURITIES AND EXCHANGE COMMISSION"
part_number: "242"
part_name: "REGULATIONS M, SHO, ATS, AC, NMS, SE, AND SBSR, AND CUSTOMER MARGIN REQUIREMENTS FOR SECURITY FUTURES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 77g, 77q(a), 77s(a), 78b, 78c, 78c-4, 78g(c)(2), 78i(a), 78j, 78k-1(c), 78 78m, 78n, 78(b), 78(c), 78(g), 78q(a), 78q(b), 78q(h), 78w(a), 78dd-1, 78mm, 80a-23, 80a-29, 80a-37, and 8343."
regulatory_source: "62 FR 544, Jan. 3, 1997, unless otherwise noted."
cfr_part: "242"
---


# 242.832 Application of the trade execution requirement to cross-border security-based swap transactions.

(a) The trade execution requirement set forth in section 3C(h) of the Act shall not apply in connection with a security-based swap unless at least one counterparty to the security-based swap is a “covered person” as defined in paragraph (b) of this section.

(b) A “covered person” means, with respect to a particular security-based swap, any person that is:

(1) A U.S. person;

(2) A non-U.S. person whose performance under a security-based swap is guaranteed by a U.S. person; or

(3) A non-U.S. person who, in connection with its security-based swap dealing activity, uses U.S. personnel located in a U.S. branch or office, or personnel of an agent of such non-U.S. person located in a U.S. branch or office, to arrange, negotiate, or execute a transaction.