Alert December 21, 2010

SEC and CFTC Seek Comment on Definitions in Dodd-Frank Act Derivatives Regulatory Framework

The SEC and CFTC published a joint notice of proposed rulemaking requesting comment from interested parties on rulemaking by the agencies to further define certain key definitions that are part of the comprehensive scheme for regulating swaps and security‑based swaps set forth in Title VII of the Dodd-Frank Act.  The key definitions at issue are the definitions of “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant,” and “eligible contract participant.”  The joint notice also includes guidance on how the agencies propose to interpret these definitions.  For further discussion of Title VII of the Dodd-Frank Act, please see the August 2, 2010 Special Edition of the Alert.  Comments on the proposal are due by February 22, 2011.