U.S. federal regulators propose making permanent threshold for swap dealer registration potentially benefitting energy companies and small and mid-size banks

Pursuant to regulations promulgated under the Dodd-Frank Act, entities that make a market in swaps, hold themselves out as dealers in swaps or regularly enter into swaps for their own accounts are required to register as swap dealers with the U.S. Commodity Futures Trading Commission (the CFTC). However, pursuant to CFTC regulations finalized in 2012, certain entities do not need to register as swap dealers.

Accordingly, pursuant to the so-called "de minimis exception", entities that have had, over the course of the immediately preceding 12 months, an aggregate gross notional amount of no more than US$3 billion in swaps have not had to register as swap dealers, subject to a phase-in period, during which the threshold is set at US$8 billion. The phase-in period was originally scheduled to expire on December 31, 2017 but was subsequently extended to December 31, 2019. On June 5, 2018, the CFTC proposed to permanently set the de minimis exception at US$8 billion. If finalized as a rule, the permanent de minimis exception would affect small and mid-size banks as well as energy companies that trade derivatives.

Read More: U.S. federal regulators propose making permanent threshold for swap dealer registration, potentially benefitting energy companies and small and mid-size banks


Download PDF Share Back To Listing
Loading data