The Securities and Exchange Commission and the Commodity Futures Trading Commission are forging ahead with their Dodd-Frank Act mandate to write new rules to bring the derivatives market under the regulatory umbrella.
As part of their work to establish a framework for regulating the over-the counter swaps market, the agencies have published their proposed definitions of the terms “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant.” Those definitions will determine which swap dealers will be subject to registration, margin, capital and business conduct requirements.
