RIADeFi

SEC and CFTC seek comment on harmonizing derivatives product definitions

Regulation · · Ketju Research

U.S. Securities and Exchange Commission · Commodity Futures Trading Commission

This entry records a proposal. It does not change the law unless it is adopted.

What changed

The SEC and CFTC jointly opened a request for comment on updating and harmonizing swaps, security-based swaps, mixed swaps, exclusions, novel products, jurisdictional lines, and alternative compliance. The request creates no current exemption or definitional change.

Who it affects

  • Swap and security-based swap market participants
  • Advisers, funds, dealers, venues, clearinghouses, CTAs, CPOs, and clients using novel derivatives

What is still open

  • Whether the agencies will propose rules or interpretations
  • Treatment of mixed, event-based, crypto-linked, and other emerging products

What it means for an advisor

  • Inventory products whose classification or reporting depends on Title VII definitions
  • Monitor the docket and preserve current compliance treatment until an operative action is adopted

Previous interpretation

The agencies administered existing Title VII definitions without this new joint harmonization review.

Sources

  1. SEC, CFTC Seek Public Comment to Further Clarify and Harmonize Derivatives Product Definitions · U.S. Securities and Exchange Commission and Commodity Futures Trading Commission ·

Version 1, published . Educational analysis, not legal advice.