CFTC and SEC could diverge on rules, says Schapiro

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US regulators will have to be flexible in implementing the Dodd-Frank Act, says Securities and Exchange Commission (SEC) chair Mary Schapiro, speaking exclusively to Risk.net.

Under Dodd-Frank, the job of regulating the swap market falls to the CFTC, while the SEC will take responsibility for the smaller market in security-based swaps. Security-based swaps include swaps linked to a single security or loan, such as single-name credit default swaps, as well as swaps referencing a narrow basket of