Statement Summary
The SEC and CFTC have jointly issued a request for public comment aimed at updating and clarifying derivatives product definitions and interpretive issues. This initiative addresses potential regulatory ambiguities that may hinder fair competition and innovation in evolving market structures. SEC Chairman Paul S. Atkins and CFTC Chairman Michael S. Selig emphasize the importance of collaboration in creating a level playing field for both established firms and newcomers, regardless of their registration status. The request seeks public input on various topics related to regulatory definitions under Title VII of the Dodd-Frank Act. The comment period will be open for 60 days following its publication in the Federal Register.
Original Statement
The Securities and Exchange Commission and the Commodity Futures Trading Commission today issued a joint request for public comment on potential opportunities to further update, clarify, and harmonize certain derivatives product definitions and interpretive issues. The request for comment is intended to support the Commissions’ ongoing evaluation of whether current regulatory definitions, interpretations, and jurisdictional frameworks appropriately reflect evolving market structures, financial products, and trading practices.
“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,” said SEC Chairman Paul S. Atkins.
“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.”
The joint request for comment seeks input on topics including: The SEC and CFTC encourage the public to provide input on these topics, as identified in the agencies’ request for comment. The public comment period will remain open for 60 days following publication of the request for comment in the Federal Register.
