Further Definition of “Swap,” “Security-Based Swap,” and “Security-Based Swap (CFTC/SEC Joint Final Rule and Interpretations, Request for Comment)

In accordance with section 712(a)(8), section 712(d)(1), sections 712(d)(2)(B) and (C), sections 721(b) and (c), and section 761(b) of the Dodd-Frank Act, the CFTC and the SEC, in consultation with the Board of Governors of the Federal Reserve System, are jointly adopting new rules and interpretations under the Commodity Exchange Act and the Exchange Act to further define the terms "swap," "security-based swap," and "security-based swap agreement" (collectively, "Product Definitions"); regarding "mixed swaps;" and governing books and records with respect to "security-based swap agreements." The CFTC requests comment on its interpretation concerning forwards with embedded volumetric optionality, contained in Section II.B.2.(b)(ii) of this release.

Effective Date: [INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].

Compliance Date: The applicable compliance dates are discussed in the section of the release titled "IX. Effective Date and Implementation". Comments on theinterpretation regarding forwards with embedded volumetric optionality must be received on or before [INSERT DATE 60 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER].

Cross References: CFTC Rules 1.3 (Definitions), 1.6 (Anti-Evasion), 1.7 (Books and records requirements for security-based swap agreements), 1.8 (Requests for interpretation of swaps, security-based swaps, and mixed swaps), 1.9 (Regulation of mixed swaps); Securities Act Rule 194 (Definitions of the terms "swap" and "security-based swap" as used in the Act); Exchange Act Rules 3a68-1a through 3a68-5 and 3a69-1 through 3a69-3 (Further Definition of Swap, Security-Based Swap, and Security-Based Swap Agreement; Mixed Swaps; Security-Based Swap Agreement Recordkeeping); Proposed/Not-Yet-Effective CFTC Rules, Securities Act Rules, Exchange Act Rules.

View rule release in full here (links externally to CFTC website).