MFA urged the SEC and CFTC to clarify and harmonize the regulatory treatment of swaps, security-based swaps, and related products.
MFA explains that:
- Clear, consistent definitions would help firms determine which agency’s rules apply.
- New guidance should address genuine uncertainty without disrupting established products and practices.
- Objective criteria are needed to classify novel and evolving products.
- An alternative compliance framework would reduce duplicative or conflicting requirements.
- The agencies should coordinate oversight and protect firms making good-faith classification decisions.
