CFTC, SEC ask public to define swaps as CME takes agency to court
The CFTC and SEC have asked the public to comment on how U.S. rules define swaps, security-based swaps, and related derivatives products. The joint request focuses on Title VII of the Dodd-Frank Act, the law that split parts of the swaps market between the two agencies. The request seeks input on swap exclusions, mixed swaps, jurisdictional questions, alternative compliance, and new products. The agencies said comments will remain open for 60 days after publication in the Federal Register. The agencies said market structures and trading practices have changed since the original rules took shape. They asked whether current definitions still match the way derivatives products now trade. The review also gives both agencies a common record as they weigh products that may touch both commodities and securities laws. It could also shape future staff guidance for market participants and courts. CFTC Chair Michael Selig said the request could address “longstanding ambiguities” in Dodd-Frank. SEC Chair Paul Atkins said clarification is “long overdue,” including for event-based products. CME lawsuit raises pressure The public comment request came as CME Group sued the CFTC over the agency‘s treatment of crypto perpetual futures. CME argues that Kalshi’s perpetual futures should fall under swaps rules, not ordinary futures rules. As previously reported by