On August 19, the SEC and the CFTC requested comments for a study to assist in determining whether stable value contracts fall within the definition of a swap and, if so, whether exempting these contracts from the swap definition is appropriate and in the public interest. Comments must be received by 30 days after publication in the Federal Register. SEC Release.
study
FSOC Risk Retention Study
On January 18, the Financial Stability Oversight Council released a study on the macroeconomic effects of the risk retention requirements under the Dodd-Frank Act. The study examines how risk retention can help reform the securitization market, protect the public against irresponsible lending practices, and facilitate economic growth by allowing for safe and stable credit formation for consumers, businesses, and home owners. Treasury Release. FSOC Study.
FSOC Volcker Rule Study
On January 18, the Financial Stability Oversight Council issued a study required by the Dodd-Frank Act entitled, “Study & Recommendations on Prohibitions on Proprietary Trading & Certain Relationships with Hedge Funds & Private Equity Funds”. The study recommends, among other things, that rulemaking agencies consider providing exceptions for certain funds that are within the Volcker Rule’s broad definition of “hedge fund” and “private equity fund”. FSOC Study.