CFTC and SEC Propose Definitions for Major Swap Participants and Major Security-Based Swap Participants

December 14, 2010
In early December, the Commodity Futures Trading Commission and Securities and Exchange Commission proposed for public comment a joint rulemaking to provide further definitions to the terms “major swap participant” and “major security-based swap participant.” The parameters the two agencies set around these terms would determine if certain swap market participants will be subject to comprehensive regulation under the Dodd-Frank Wall Street Financial Reform and Consumer Protection Act, including registration and additional capital, margin and business conduct requirements.