• Final Product Definitions under Title VII of Dodd-Frank: CFTC and SEC Adopt Rules and Guidance to Further Define “Swap”, “Security-Based Swap”, “Mixed Swaps” and Other Swap-Related Terms
  • August 28, 2012
  • Law Firm: Sullivan Cromwell LLP - New York Office
  • Pursuant to the regulatory framework established by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), the Commodity Futures Trading Commission (“CFTC”) has regulatory authority over swaps under the Commodity Exchange Act (“CEA”), the Securities and Exchange Commission (“SEC”, and with the CFTC, the “Commissions”) has regulatory authority over security-based swaps under the Securities Exchange Act of 1934 (the “Exchange Act”), and the Commissions share jurisdiction with respect to “mixed swaps” (generally, security-based swaps that are also based on specified elements indicative of swaps). Section 721 of Dodd-Frank sets forth definitions of the terms “swap” and “mixed swap”, and Section 761 of Dodd-Frank defines a “security-based swap”; Section 712(d)(1) requires that the Commissions, in consultation with the Board of Governors of the Federal Reserve System (the “Board”), further define certain terms used in Title VII of Dodd-Frank, including “swap” and “security-based swap”.