WASHINGTON (Reuters) - Securities regulators on Monday finalized rules that define what kinds of derivatives products will be regulated under the new regime created by the 2010 Dodd-Frank Wall Street reform law.
The Securities and Exchange Commission voted unanimously behind closed doors to approve definitions for terms such as “swap” and “security-based swap,” according to a statement.
The rules still must be jointly approved by the Commodity Futures Trading Commission, which is slated to vote on Tuesday morning at a public meeting.
The rules are a critical part of the Dodd-Frank reforms because they trigger a countdown for compliance dates that big swap players like banks will have to follow.
Once the CFTC signs off on the rules and they are published in the Federal Register, swap dealers will have two months to sign up with the regulator.
Other regulatory requirements, such as record-keeping and reporting, will also kick in after the two-month window.
The SEC did not provide any details on the final rules.
But regulators are expected to closely follow the swap definition that is laid out in the text of the Dodd-Frank law.
Critics have accused the SEC and CFTC of tackling the various Dodd-Frank derivatives rules out of order, saying they should have focused on defining a swap before moving on to craft other regulations.
Additional reporting by Alexandra Alper; Editing by Gerald E. McCormick and Leslie Gevirtz