---
kind: "section"
citation: "17 C.F.R. § 23.410"
title: "17"
number: "23.410"
heading: "Prohibition on fraud, manipulation, and other abusive practices."
url: "https://uscodex.org/cfr/17/23.410"
---

# §23.410. Prohibition on fraud, manipulation, and other abusive practices.

- (a) **Prohibition.** It shall be unlawful for a swap entity—
  - (1) To employ any device, scheme, or artifice to defraud any Special Entity or prospective customer who is a Special Entity;
  - (2) To engage in any transaction, practice, or course of business that operates as a fraud or deceit on any Special Entity or prospective customer who is a Special Entity; or
  - (3) **To engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative.**
- (b) **Affirmative defense.** It shall be an affirmative defense to an alleged violation of paragraph [(a)(2)](#a-2) or [(3)](#a-3) of this section for failure to comply with any requirement in this subpart if a swap entity establishes that the swap entity:
  - (1) Did not act intentionally or recklessly in connection with such alleged violation; and
  - (2) Complied in good faith with written policies and procedures reasonably designed to meet the particular requirement that is the basis for the alleged violation.
- (c) **Confidential treatment of counterparty information.**
  - (1) It shall be unlawful for any swap entity to:
    - (i) Disclose to any other person any material confidential information provided by or on behalf of a counterparty to the swap entity; or
    - (ii) Use for its own purposes in any way that would tend to be materially adverse to the interests of a counterparty, any material confidential information provided by or on behalf of a counterparty to the swap entity.
  - (2) Notwithstanding [paragraph (c)(1)](#c-1) of this section, a swap entity may disclose or use material confidential information provided by or on behalf of a counterparty to the swap entity if such disclosure or use is authorized in writing by the counterparty, or is necessary:
    - (i) For the effective execution of any swap for or with the counterparty;
    - (ii) To hedge or mitigate any exposure created by such swap; or
    - (iii) To comply with a request of the Commission, Department of Justice, any self-regulatory organization designated by the Commission, or an applicable prudential regulator, or is otherwise required by law.
  - (3) Each swap entity shall implement written policies and procedures reasonably designed to protect material confidential information provided by or on behalf of a counterparty from disclosure and use in violation of this section by any person acting for or on behalf of the swap entity.

## Notes

### Source

Source: 90 FR 61252, Dec. 30, 2025, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6b-1, 6c, 6p, 6r, 6s, 6t, 9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21. Section 23.160 also issued under 7 U.S.C. 2(i); Sec. 721(b), Pub. L. 111-203, 124 Stat. 1641 (2010).

### Source

Source: 77 FR 2628, Jan. 19, 2012, unless otherwise noted.