WASHINGTON (CN) - To implement the recently passed Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission and the Commodities Futures Trading Commission have asked the public to assist the agencies in defining the terms and writing the rules on "mixed swaps."
Mixed swaps are economic contracts based on the combined value of an underlying asset such as a security or property and the performance of one or more standard of value such as currency exchange rates, interest rates or other floating rate mechanisms.
Under Dodd-Frank the SEC will regulate securities based swaps and the CFTC will regulate non-securities based swaps. The public has 30 days to comment on definitions and proposals for regulation of the asset swap agreements.
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