With a July 16th deadline looming, the SEC and CFTC are pushing forward with the rule making process required under the Dodd-Frank Act (DFA). They and most others recognize that the import and sheer volume of work required under the law makes it virtually impossible to accomplish the task in the time required. Even without the final rules in place, many provisions of DFA will take effect on that date, which is 360 days after its signing. This intensive symposium will highlight areas of principal concern under DFA and the commodities and securities laws so that market participants can be prepared for the changes that are just around the corner.
Commodities Law Implications of DFA Provisions
DFA subjects many swaps (notably, interest rate and commodity swaps) to regulation under the commodities laws and repeals certain provisions of the Commodity Futures Modernization Act. Regardless of the status of CFTC rule making on July 16, 2011, certain of these provisions will be applicable to trades entered into on or after that date. These include provisions surrounding price manipulation, false reporting and fraud, as well as the potential for private rights of action. This panel will discuss these provisions.
Securities Law Implications of DFA Provisions
Similar issues arise for the application of securities laws to security-based swaps entered into on or after July 16, 2011. While securities-based swaps represent a smaller piece of the overall OTC derivatives market, there are important implications of DFA provisions on these types of transactions. A particular focus for this session will be on the effect of definitional changes, such as the inclusion of security-based swap in the definition of “security”.
