The Securities and Exchange Commission has voted unanimously to propose joint rules with the Commodity Futures Trading Commission that would further define a series of terms related to the security-based swaps market.
The terms include “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant.”
The rules seek to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which among other things established a framework for regulating the over-the counter swaps market.
SEC chairman Mary L. Schapiro says: “Today’s proposals lay out objective criteria, but they are just a first step, as we seek public comment to help us appropriately address the market impacts and potential risks posed by these entities.”
The SEC is seeking public comment on the proposed rules for a period of 60 days following their publication in the Federal Register.
