Swaps and Security-Based Swaps under Title VII of the Dodd-Frank Act: U.S. Regulation


This practice note discusses the effect of the Dodd-Frank Act on swaps and security-based swaps. constitutes the most sweeping financial reform package since the 1930’s. Title VII of the Dodd-Frank Act (Title VII) brought about a complete overhaul of the regulation of the over-the-counter (OTC) derivatives market in the United States. In place of the previous regime in which OTC derivatives were largely exempt from substantive regulation, Title VII subjects all derivatives to substantive regulatory oversight. “Swaps” are generally regulated by the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act (CEA), and “security-based swaps” are regulated by the Securities and Exchange Commission (the SEC and, together with the CFTC, the Commissions) under the Securities Exchange Act of 1934, as amended (Exchange Act).