The U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have proposed rules that will exempt insurance from swaps regulations, Bloomberg reports. The proposed rules define which types of trades will face rules aimed at limiting risk and boosting transparency in the $583 trillion global swaps market.
As per the proposal, credit-default swaps linked to indexes of nine or more securities will be regulated by the CFTC, while such swaps tied to narrower indexes will be managed by the SEC. The proposal also creates a system for managing mixed swaps that do not fall exclusively under the oversight of the CFTC or the SEC.
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