SEC and CFTC Seek Public Input for Joint Stable Value Contract Study
FOR IMMEDIATE RELEASE
Washington, D.C., Aug. 19, 2011 – The Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) have approved for publication in the Federal Register a request for public comment that is expected to assist in conducting a joint study on stable value contracts.
Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides for the comprehensive regulation of swaps and security-based swaps and includes definitions of key terms relating to such regulation. It requires the SEC and CFTC to jointly conduct a study to determine whether stable value contracts fall within the definition of a swap, and if so, whether exempting such contracts from the swap definition is appropriate and in the public interest.
The Dodd-Frank Act calls for the SEC and CFTC to make the determination in consultation with the Department of Labor, the Department of the Treasury, and the state entities that regulate the issuers of stable value contracts.
Public comments must be received on or before 30 days after publication in the Federal Register.