OCC Responds to Joint Request for Comment on Further Definition of “Swap” and “Security-Based Swap” and on Alternative Compliance

On June 24, the CFTC and SEC jointly issued a Request for Comment on the further definition of “swap” and “security-based swap” and on alternative compliance. The first portion of the request asks a series of questions about product definitions, specifically the definitions of “swap” and “security-based swap.” Many of the questions specifically request comment on how event contracts fit within the various product definitions. Finally, the Commissions ask questions about a potential alternative compliance regime.

On August 24, 2026, OCC submitted a comment letter in response to the joint request for comment. OCC’s comment raises the following key points in response to the Commissions:

• • When an event contract is an option on a security or group or index of securities, whether American style, European style, or otherwise, it meets the definition of a security and the exclusion from the definition of "swap" and "security-based swap."
  • The Commissions’ ongoing harmonization efforts are an ideal means to ensure that economically similar products and risks are subject to similar regulatory treatment.
  • Harmonization of portfolio margining and the regulatory filling process at each Commission would be particularly helpful to market participants.

OCC’s full letter is available here.