Congressman Barney Frank today released the following statement in response to the announcement by the Commodity Futures Trading Commission (CFTC) that its commissioners have voted to approve a definition of the term "swap" for the purpose of administering the Wall Street Reform and Consumer Protection Act. This rule was jointly written with the Securities and Exchange Commission, which adopted it last Friday. The CFTC also approved exemptions for end-users and for some transactions executed by cooperatives from the clearing requirement for swaps outlined in the financial reform law.
The CFTC's approval of the definition of the term "swap" is an important step in implementing the regulation of derivatives. I am pleased that the Commission established this rule in a thoughtful and deliberative fashion. This underscores the importance of granting the CFTC the funding it needs.