CFTC/SEC Joint Report: International Swap Regulation

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In accordance with Section 719 of the Dodd-Frank Act, a joint committee of the Commodity Futures Trading Commission and Securities and Exchange Commission conducted a study of how swaps are regulated in the United States, Europe and Asia. The final report was delivered to Congress on January 31, 2012, and released to the public on February 2, 2012.[1]

The Report

The report consists of four sections:

  1. The Congressional mandate for the study, Section 719(c) of the Dodd-Frank Act
  2. The regulatory framework for OTC derivatives in the U.S. and abroad
  3. A regulatory comparison between and among jurisdictions
  4. Conclusion and appendices.

The highlight of the report can be found in Appendix 1, pages 119-139. These pages contain a complete summary, by jurisdiction, of:

  • Each derivatives clearing organization (DCO) operating within the jurisdiction;
  • The regulator overseeing the DCO;
  • The swap product classes cleared;
  • The clearing method used by the DCO;
  • The DCO's margining system; and
  • The volume and outstanding notional interest of swaps it has cleared.

The report concludes with recommendations that CFTC and SEC staffs monitor developments among jurisdictions, participate in development of international standards, and engage in dialogues with regulatory staff in the European Union, Japan, Hong Kong, Singapore, Canada, and additional jurisdictions as appropriate.

Though approved by both commissions, some commissioners, including CFTC Commissioner Scott O'Malia, dissented, stating the report "fails to properly capture the entirety of the regulatory landscape."[2]

The entire report can be found below.


  1. Commodity Futures Trading Commission and Securities and Exchange Commission Release Joint Report to Congress on International Swap Regulation. CFTC. Retrieved on February 2, 2012.
  2. Statement Of Dissent To The CFTC-SEC Report On International Swap Regulation, CFTC Commissioner Scott D.. Mondovisione. Retrieved on February 3, 2012.

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