§78c–1 Swap Agreements

Summary

Excludes security-based swap agreements from the law’s definition of “security.” The Commission cannot register, require, suggest, or recommend registering a security-based swap agreement under this chapter. If the Commission learns a registrant filed to register such an agreement, the Commission must promptly tell the registrant, and any such registration is void and has no effect. Except for the reporting rules in section 78p(a), the Commission may not make, interpret, or enforce rules or issue broad orders that impose reporting or recordkeeping duties as preventative measures against fraud, manipulation, or insider trading for security-based swap agreements. When the chapter talks about the “purchase” or “sale” of a security-based swap agreement, it means doing things like entering into it, ending it early, assigning or exchanging it, transferring it, or otherwise extinguishing the rights or obligations under it.