- Foreign exchange swaps and forwards;
- Foreign currency options (other than foreign currency options traded on a national securities exchange);
- Commodity options; and
- Cross-currency swaps and forward rate agreements.
The regulators’ interpretations also clarify that the determination of whether a particular agreement, contract or transaction is a swap, SBS or mixed product is made at the inception of the instrument and that the characterization remains through the life of the instrument (unless the instrument is later amended or modified). Also of note, the definitions create a safe harbor for certain insurance products and exempt some consumer and commercial transactions, such as life, property and casualty insurance.Importantly, the new rules also set in motion the registration requirements for “swap dealers,” who have 60 days to register with the National Future Association after the final definitions are published in the Federal Register. For additional information about the new regulations for derivatives, or any other securities law concern, please contact us at (619)298-2880.