Regulators Issue Final Rules And Interpretations Further Defining Swap-Related Terms - Part I

After much anticipation, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) (together, the Commissions) on July 10 adopted joint final rules and interpretations¹ further defining the terms "swap," "security based swap," "securitybased swap agreement" (SBSA), and "mixed swap" pursuant to Title VII of the Dodd-Frank Act (DFA).² The final rules and interpretations will go into effect on October 12, 2012, 60 days after their publication in the Federal Register on August 13, also triggering the compliance dates for a variety of other swap-related regulatory requirements, including the filing of applications for registration with the CFTC as a swap dealer or major swap participant (MSP).³ This article discusses the final rules and interpretations.