Executive Summary

This Client Advisory summarizes significant aspects of the Proposed Rules issued jointly by the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) (collectively, the “Commissions”) on December 7, 2010, to define the terms “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant” and “Major Security-Based Swap Participant”1. As a centerpiece of the new regulatory regime for derivatives, the Dodd-Frank Act (the “Act”)2 requires persons that fall within those definitions to register as such with the CFTC and/or the SEC and subjects such persons to extensive regulation, including margin, capital and business conduct requirements. The highlights of the Proposed Rules are as follows...