Tag: forward contracts

Corp Fin posts CDI regarding swaps and forward contracts

Corp Fin has posted a new Exchange Act CDI regarding swaps and forward contracts. Swaps and security-based swaps are subject to a comprehensive regulatory framework established under Dodd-Frank. Under release 33-9338, forward contracts are excluded from the definitions of the terms “swap” and “security-based swap.” More specifically, these definitions exclude “any sale of a nonfinancial commodity or security for deferred shipment or delivery, so long as the transaction is intended to be physically settled.” But what if the underlying securities cannot be legally transferred when the parties enter into the contract? Are they still ”intended to be physically settled”? New Question 101.01 addresses this question.