The Commodity Futures Trading Commission and the Securities and Exchange Commission have issued a joint request for public comment on their initiative to update and clarify certain derivatives product definitions and interpretations.
The request seeks public input on a broad range of topics, including the definitions of "swaps" and "security-based swaps," as well as the scope of exclusions from those definitions.
The agencies are also requesting feedback on the treatment of novel or emerging products, which may include event contracts on prediction market platforms or perpetual futures contracts.
"Today's joint request for public comment presents an opportunity to address longstanding ambiguities within Title VII of Dodd-Frank that have stifled fair competition and responsible innovation," CFTC Chairman Michael S. Selig said in a press release. Title VII of the Dodd-Frank Act gives the CFTC regulatory authority over swaps, except for security-based swaps.
SEC Chairman Paul Atkins also said in the release that clarification is "long overdue" for certain definitions, specifically mentioning event-based products.
