On July 21, 2010, the Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or Act) was enacted. Section 719(b) of the Dodd-Frank Act mandates that the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) conduct a study on the feasibility of requiring the derivatives industry to adopt standardized computer-readable algorithmic descriptions which may be used to describe complex and standardized financial derivatives. These algorithmic descriptions would be designed to “facilitate computerized analysis of individual derivative contracts and to calculate net exposures to complex derivatives.” The study must also consider the extent to which the algorithmic description, together with standardized and extensible legal definitions, may serve as the binding legal definition of derivative contracts.
Related Federal Register Releases
75 FR 76706 // PDF Version
Acceptance of Public Submissions on a Study Mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, Section 719(b)
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Closing Date: 12/31/2010