SEC Adopts Rule Defining Swaps-Related Terms for Regulating Derivatives

The SEC unanimously adopted a new rule to define a series of terms related to the over-the-counter swaps market.  The rules, written jointly with the Commodity Futures Trading Commission (CFTC), implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that established a comprehensive framework for regulating derivatives.

The SEC has posted on its website a fact sheet on the new definitions.  The rule will become effective 60 days after the date of publication in the Federal Register.