The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are seeking public comment on potential opportunities to further update certain derivatives product definitions and issues.
The joint request for comment seeks input on topics including:
- Definitions relating to swaps and security-based swaps, including the scope of certain exclusions from the swap definition.
- Treatment of mixed swaps.
- Treatment of novel or emerging products.
- Jurisdictional and interpretive questions.
- Potential areas in need of greater clarity regarding regulatory definitions.
- Potential areas for alternative compliance.
“Clarification is long overdue on Title VII definitional issues, including event-based products. Through good-faith cooperation efforts, we can create a level playing field where established firms and new entrants alike can compete and innovate on equal footing regardless of whether they’re registered with the SEC or CFTC,” SEC Chairman Paul Atkins said.
The request for comment is intended to support the commissions’ evaluation of whether current regulatory definitions, interpretations, and jurisdictional frameworks appropriately reflect evolving market structures, financial products, and trading practices.
“Today’s joint request for public comment presents an opportunity to address longstanding ambiguities within Title VII of Dodd-Frank that have stifled fair competition and responsible innovation,” CFTC Chairman Michael Selig said. “I appreciate the partnership of the SEC and Chairman Atkins as we work together to further clarify jurisdictional lines and enhance cooperation between our agencies.”
The public comment period will remain open for 60 days following publication of the request for comment in the Federal Register.