SEC and CFTC Propose Product Definitions for Swaps

SEC Release No. 33-9204 / 34-64372

April 29, 2011

The SEC and CFTC, in consultation with the Fed, published a joint proposal to further define the terms "swap," "security-based swap," and "security-based swap agreement." Among other things the proposal would, (1) exclude certain insurance products from the definitions of swap and security-based swap; (2) exclude certain consumer and commercial transactions (such as consumer loans and mortgages, property leases, and warehouse lending arrangements) from the definitions of swap and security-based swap; (3) distinguish types of products are "swaps" and "security-based swaps" (and thus subject to SEC or CFTC jurisdiction); (4) establish a process whereby firms could request a determination as to whether a product is a swap, security based swap, or both.

Please contact any of the following Cadwalader attorneys if you have any questions about this item:

Steven Lofchie; [email protected]

Jeffrey Robins; [email protected]

Cross References

Dodd-Frank §§ 712(a)(8); 712(d)(1)-(2); 721(b)-(c)

SEC Press Release No. 2011-99

SEC Release No. 34-62717 (Concept release requesting comment on definitions)

CFTC Fact Sheet

CFTC Q&A