SEC and CFTC ask for input on defining swaps and security-based swaps
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Table of Contents
The Securities and Exchange Commission and the Commodity Futures Trading Commission have published a proposed rule seeking public comment on how to define two key financial terms: “swap” and “security-based swap.” These definitions determine which agency regulates specific financial contracts.
Why it matters: Clear definitions matter because they dictate compliance requirements, reporting obligations, and which regulator has authority over a given transaction. Ambiguity can lead to legal uncertainty for firms creating new financial products or trading across traditional market boundaries.
Who it affects
- Financial market participants dealing in derivatives
This is a proposed rule from the SEC and CFTC published in the Federal Register; readers should consult the full document for specific regulatory language before relying on this summary.
Agency: Commodity Futures Trading Commission, Securities and Exchange Commission
Source: Federal Register — read the official document