SIFMA statement on final rules on the definitions of swap and security-based swaps

10 July 2012

SIFMA released a statement from President and CEO Tim Ryan, after the Commodity Futures Trading Commission, finalising a joint CFTC-SEC rule that would define what would be a swap and security based swap for regulatory purposes.

All of the derivatives-related rule makings being issues by the CFTC and SEC are fundamentally dependent on what these agencies determine what will be a swap, security based swap and mixed swap. Now, with product definitions finalised, although still subject to interpretation, a number of major CFTC rules will go into effect, including swap dealer and major swap participant registration, external business conduct requirements, transaction reporting requirements, and position limits, to name a few. These definitions will have a broad affect on the marketplace by triggering many other rules, and SIFMA will work with its members to ensure these definitions and the implementation deadlines they trigger are workable and that the market can continue to serve as a key source of risk management tools.

Press release

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