Market regulation · 13/08/2012

CFTC and SEC Jointly Adopt New Rules to Define Swaps, Security-Based Swaps, and Swap Agreements

The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are jointly adopting new rules and interpretations under the Commodity Exchange Act and the Securities Exchange Act of 1934 to further define the terms 'swap,' 'security-based swap,' and 'security-based swap agreement.' The new rules also cover 'mixed swaps' and recordkeeping requirements for 'security-based swap agreements.' The CFTC is seeking public comment on its interpretation of forwards with embedded volumetric optionality.