In an effort to regulate over-the-counter derivatives, Title VII of the Dodd-Frank Act establishes a comprehensive framework to regulate over-the-counter derivatives authorizes the Commodity Futures Trading Commission to regulate "swaps," and the SEC to regulate "security-based swaps."
SEC Chairman Mary Schapiro said the policy statement seeks to provide a ‘roadmap’ to market participants and the public on how we expect to implement the various regulatory requirements for this market.
"We look forward to public comment on our anticipated sequencing as we continue to adopt and implement the rules under the law," Schapiro added.
The regulatory agency has also asked the public to provide their view on its plan so that it can draw final rules regulating security-based swaps and security-based swap market participants.
The US watchdog believes that the phased-in approach will avoid the disruption that could occur if all the new rules took effect simultaneously.
