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What is a Dodd-Frank swap?

What is a Dodd-Frank swap?

Create transparency in derivatives markets. Prohibit entities holding customer deposits from engaging in speculative derivatives activity.

Who regulates equity swaps?

“Swaps” are generally regulated by the Commodity Futures Trading Commission (the “CFTC”) under the Commodity Exchange Act (the “CEA”), and “security-based swaps” are regulated by the Securities and Exchange Commission (the “SEC” and, together with the CFTC, the “Commissions”) under the Securities Exchange Act of 1934.

What swaps does the SEC regulate?

The SEC has jurisdiction over Security-Based Swaps: All swaps based on a single security or loan, a narrow-based security index (generally, an index or basket composed of nine or fewer securities), and credit default swaps on a single loan or security or issuers of securities in a narrow-based securities index.

What regulation is Dodd-Frank?

The Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd–Frank) is a United States federal law that was enacted on July 21, 2010.

What is Dodd-Frank Title VII?

Title VII of Dodd-Frank Wall Street Reform and Consumer Protection Act addresses the gap in U.S. financial regulation of OTC swaps by providing a comprehensive framework for the regulation of the OTC swaps markets. The CFTC has primary regulatory authority over all other swaps, such as energy and agricultural swaps.

When did Dodd-Frank restricted over the counter derivatives trading?

July 21, 2010
Reform and Consumer Protection Act However, since July 21, 2010 when the Dodd-Frank Act was signed into law, OTC derivatives transactions have fallen within the purview of the Commodities Futures Trading Commission (CFTC) (swaps) and the Securities and Exchange Commission (SEC) (securities-based swaps).

Are mixed swaps only regulated by the CFTC?

Mixed swaps are swaps that fall under the definitions of both swaps and security-based swaps, governed by both the SEC and the CFTC.

How are swaps transacted?

Are swaps required to be transacted through a swap execution facility? While many swaps now must be traded on a SEF, financial institutions can still transact certain swaps over-the-counter (OTC) directly between one another. But, swap trades that are eligible to be cleared must use a SEF.