Alert August 14, 2012

CFTC/SEC Product Definition Rules Published in Federal Register to be Effective on October 12, 2012

The joint CFTC/SEC rules further defining the terms “swap,” “security-based swap,” and “security-based swap agreement” have been published in the Federal Register.  The product definition rules, as they are generally known, also provide interpretive guidance regarding mixed swaps.

The effective date of the rules is October 12, 2012.  As previously reported, compliance will be required for a number of other CFTC rules, such as those requiring swap dealers and major swap participants to apply for registration as such, starting on the same day.  Some rules, including a rule pertaining to real-time public reporting of swap transaction data as well as rules pertaining to swap data recordkeeping and reporting requirements, have a series of dates for which compliance will be required with regard to different products or entities.  The first of those dates is October 12, 2012, with subsequent compliance dates of January 10, 2013 and April 10, 2013.