CFTC-SEC Release Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives

CFTC Joint SEC-CFTC Study

CFTC PR 6017-11

April 8, 2011

Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives

April 8, 2011

The CFTC and SEC have delivered to Congress a joint staff study on "the feasibility of requiring the derivatives industry to adopt standardized computer-readable algorithmic descriptions that may be used to describe complex and standardized financial derivatives" The joint study concludes that current technology is capable of representing derivatives using a common set of computer-readable descriptions. These descriptions are precise enough to be used both for the calculation of net exposures and to serve as part or all of a binding legal contract.

Cross References

Dodd-Frank Act, Title VII, Sec. 719(b)