The Commodity Futures Trading Commission and Securities and Exchange Commission announced on June 18 a joint request for public comment to further update, clarify, and harmonize certain derivatives product definitions and interpretive issues.
According to the agencies, the request is intended to support their ongoing evaluation of whether current regulatory definitions, interpretations, and jurisdictional frameworks appropriately reflect evolving market structures, financial products, and trading practices.
“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,” said CFTC Chairman Michael S. Selig. “I appreciate the partnership of the SEC and Chairman Atkins as we work together to further clarify jurisdictional lines and enhance cooperation between our agencies.”
SEC Chairman Paul S. Atkins said, “Clarification is long overdue on Title VII definitional issues, including event-based products. Through good-faith cooperation efforts, we can create a level playing field where established firms and new entrants alike can compete and innovate on equal footing regardless of whether they’re registered with the SEC or CFTC.”
The joint request for comment seeks input on topics identified in the agencies’ release. The public comment period will remain open for 60 days following publication in the Federal Register.
The U.S. Commodity Futures Trading Commission functions as an independent agency established in 1974 that enforces rules against market manipulation and fraud; oversees U.S. derivatives markets such as futures, swaps, and certain options; offers public access to market data; participates in international coordination; ensures market integrity; safeguards customers; fosters transparent markets; operates in the regulatory sector; and provides educational resources, all according to the official website.