CFTC Swaps Definition Clears Way For Dodd-Frank Overhaul

Law360, New York (July 10, 2012, 1:03 PM EDT) -- The U.S. Commodity Futures Trading Commission took a significant step Tuesday toward implementing the mass of Dodd-Frank rules that will govern the opaque $650 trillion derivatives market, defining what constitutes a swap and exempting some companies from the coming requirements.

In a 4-1 vote, with Commissioner Bart Chilton dissenting, the CFTC joined the U.S. Securities and Exchange Commission in laying out definitions of "swap," "security-based swap" and "security-based swap agreement," which exclude a number of financial instruments, including most insurance contracts and security forwards.

The CFTC...
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