- Regulates the previously unregulated, over-the-counter (OTC) derivatives market
- Requires registration of swap dealers, major swap participants, swap data repositories and swap execution facilities
- Mandates central clearing and trading of swaps
- Establishes margin and capital requirements for swaps
- Mandates reporting, recordkeeping and business conduct standards
- Mandates position limits, public reporting and large trader reporting
- Prohibits federal assistance for regulated swap dealers and traders, which may require some financial institutions to restructure their derivatives-dealing activities to "push-out" certain OTC derivatives-trading activity to separately capitalized, affiliated companies
For ease of reference, unless otherwise noted, this summary uses the term "swap" to mean both swaps and securitybased swaps (and, by extension, "swap dealer" also means a security-based swap dealer, and "major swap participant" means a major security-based swap participant). Similarly, "regulator" means the CFTC with respect to swaps, and the SEC with respect to security-based swaps (abbreviated in paragraph headings as "sbs").
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