CFTC, SEC Propose Exempting Insurance From Swaps Regulation

Financial regulators voted to propose rules excluding insurance policies, home heating oil contracts and forwards tied to commodities from swaps regulations required under the Dodd-Frank Act.

The U.S. Commodity Futures Trading Commission and Securities and Exchange Commission, at separate Washington meetings today, proposed a rule defining which types of trades will face rules aimed at limiting risk and boosting transparency in the $583 trillion global swaps market. The proposal also determines when transactions fall under the jurisdiction of the SEC or CFTC. SEC commissioners voted 5-0 and the CFTC voted 4-1 to open the proposal to public comment.