The Dodd-Frank Wall Street Reform and Consumer Protection Act mandates that the CFTC and the SEC conduct a study on “the feasibility of requiring the derivatives industry to adopt standardized computer-readable algorithmic descriptions which may be used to describe complex and standardized financial derivatives.” These algorithmic descriptions should be designed to “facilitate computerized analysis of individual derivative contracts and to calculate net exposures to complex derivatives.” The study also must consider the extent to which the algorithmic description, “together with standardized and extensible legal definitions, may serve as the binding legal definition of derivative contracts.” In connection with this study, the staff of the CFTC and SEC seek responses of interested parties on certain questions.

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