SIFMA Statement On Final Rules On The Definitions Of "Swap" And “Security-Based Swaps"

SIFMA today released the following statement from President and CEO Tim Ryan after the Commodity Futures Trading Commission finalizing a joint CFTC-SEC rule that would define what would be a swap and security based swap for regulatory purposes (the SEC passed the rule by seriatim vote on July 6).  

"All of the derivatives-related rule makings being issues by the CFTC and SEC are fundamentally dependent on what these agencies determine what will be a swap, security based swap and mixed swap. Now, with product definitions finalized, although still subject to interpretation, a number of major CFTC rules will go into effect, including swap dealer and major swap participant registration, external business conduct requirements, transaction reporting requirements, and position limits, to name a few. These definitions will have a broad affect on the marketplace by triggering many other rules and we will work with our members to ensure these definitions and the implementation deadlines they trigger are workable and that the market can continue to serve as a key source of risk management tools."