• CFTC and SEC Define “Swap Dealer” and “Major Swap Participant”
  • April 19, 2012
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) adopted highly anticipated final rules yesterday to further define the terms “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant” (Final Entity Rules). The Final Entity Rules are significant because entities that meet one of the aforementioned dealer or major participant definitions will be required to register with the CFTC or SEC and comply with a myriad of substantive regulatory requirements. The Final Entity Rules are considered a key component of the new regulatory regime that the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) imposes on over-the-counter derivatives. In addition, the CFTC adopted a final rule that will subject commodity options, other than those that are physically settled, to the same regulatory regime as other types of swaps (Commodity Options Rule).