FINANCIAL SERVICES CLIENT ALERT: CFTC and SEC: Joint Final Rule Defining Dealers and Major Participants

    16 May 2012
    On April 27, 2012, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) released their joint final rule defining “Swap Dealer”, “Security-Based Swap Dealer”, “Major Swap Participant”, “Major Security-Based Swap Participant”, and “Eligible Contract Participant” (ECP) (collectively, the Final Rule).  The Final Rule is the result of a long and contentious debate between the SEC, the CFTC, and the financial services industry regarding the appropriate scope for each definition.  Further, although the rule is final, there continues to be some uncertainty surrounding the Rule, and particularly, its application in conjunction with the yet-to-be-finalized definition of a “swap” and other related products.