Last Friday, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced a joint advance notice of proposed rulemaking regarding the definitions of key terms relating to the regulation of swaps and security-based swaps (within the meaning of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)) and to solicit views on the regulation of "mixed swaps."

Title VII of the Dodd-Frank Act provides for the comprehensive regulation of swaps and security-based swaps. It includes definitions of key terms relating to such regulation, but requires the CFTC and the SEC, in consultation with the Federal Reserve, to further define the terms "swap," "security-based swap," "swap dealer," "security-based swap dealer," "major swap participant," "major security-based swap participant," "eligible contract participant" and "security-based swap agreement” and to create regulations relating to “mixed swaps” as necessary.

The public comment period will remain open for 30 days following publication of the advance notice in the Federal Register.