The US Commodity Futures Trading Commission and the Securities and Exchange Commission voted yesterday to approve proposed rules defining a swap.
The rules will ultimately determine what OTC derivatives
will have to be traded on electronic platforms and cleared. The
CFTC also voted to propose capital requirements for non-bank
In the latest round of hearings to implement the
Dodd-Frank Wall Street Reform and Consumer Protection Act, the
SEC and CFTC commissioners separately voted on one set of
proposals, which will classify the vast majority of swaps as
such, changing the way the contracts are traded and
Market participants have 60 days to comment on the
"The proposed definitions balance several policy
and legal issues in a way I believe is practical, takes into
account the specific nature of derivatives contracts, and is
consistent with existing securities regulations," said SEC
chairman Mary Schapiro.
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