Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act1 (the Dodd-Frank Act or the Act) established a comprehensive new regulatory framework for the previously unregulated swaps and security-based swaps markets. The Dodd-Frank Act directed the Commodity Futures Trading Commission (CFTC or commission) and Securities and Exchange Commission (SEC) to write a variety of rules to reduce the systemic risks presented by the derivatives markets and to increase the transparency of those markets. The new rules were to provide for the mandatory clearing for standardized swaps and security-based swaps; the trading of those standardized instruments on transparent, regulated facilities; registration, capital requirements, and business conduct standards for dealers and other large market participants in such financial instruments; comprehensive reporting requirements; and enhanced enforcement authorities.
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Originally published from Banking & Financial Services, September 2014, Aspen Publishers, a WoltersKluwer Company
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