The SEC and the CFTC declined to issue a joint interpretation on whether a particular agreement is classified as a swap, security-based swap, or mixed swap. The determination was a response to a company's request that the agencies provide guidance related to two "Reinsurance Participation Agreements" ("RPAs").
In separate releases published in the Federal Register, the SEC and CFTC each explained that they would not issue an interpretation as requested. The respective releases note that the RPAs at issue are currently the subject of ongoing litigation, and that the agencies' joint interpretation could "bear directly on that litigation." Both agencies determined that although Exchange Act Rule 3a68-2 and CEA Rule 1.8 provide a channel for firms to request joint interpretations for particular agreements, the rules are "not an appropriate vehicle for litigants . . . to obtain the views of the Commission[s] in connection with issues in ongoing litigation."
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