On Monday, August 1, 2011, the Commodity Futures Trading Commission ("CFTC") and the Securities Exchange Commission ("SEC", and together with the CFTC, the "Commissions") jointly held a public roundtable discussion on international issues related to swaps regulations under the Dodd-Frank Act. The roundtable consisted of three sessions on the following topics: cross-border transactions; global entities; and market infrastructure. Each session was moderated by CFTC and/or SEC staff and the participants included market participants representing dealer firms, investors, public interest groups, clearinghouses and derivatives exchanges. Following is a brief summary of some key discussion points and issues.
Cross-border Transactions
Question: What should trigger imposition of U.S. regulation?
There was general agreement among participants that swaps transactions with a "U.S. person" will fall under U.S. regulation. Beyond that bright line, there was disagreement as to what constitutes "direct and significant" activities or effects that would bring a non-U.S. entity or transaction under U.S. regulation under the Dodd-Frank Act.
