PTG Responds to Joint RFC on Further Definition of `Swap' and `Security-Based Swap' and on Alternative Compliance
Aug 24, 2026
In a letter filed today with both the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) PTG supports the Commissions’ efforts to clarify the distinction between swaps and security-based swaps and encourages the agencies to adopt clear, principles-based standards that can be applied consistently across products. PTG argues that regulatory classifications should reflect the actual risks and consequences associated with a product, rather than relying solely on its form.
The letter also reiterates PTG’s long-standing view that centrally traded and cleared swaps differ significantly from bilateral OTC swaps and should be regulated more like futures contracts. PTG urges the Commissions to exclude activity in these products from swap dealer de minimis calculations, arguing that doing so would better align regulation with risk and promote liquidity and competitiveness in U.S. markets.
Finally, PTG cautions that any alternative compliance framework should be based on substantive regulatory equivalence and should avoid creating opportunities for regulatory arbitrage, operational complexity, or competitive imbalances. PTG encourages continued SEC-CFTC coordination to promote regulatory harmonization, market integrity, and efficient markets.