The key risks associated with swaps include counterparty risk, market risk, liquidity risk, and operational risk. Regulatory bodies, such as the U.S. Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA), oversee and regulate the swaps market to ensure transparency, financial stability, and investor protection. Swap execution facilities (SEFs) and central counterparties (CCPs) also play critical roles in mitigating risks and enhancing market efficiency.