ARTICLE
16 November 2018

De Minimis Exception To CFTC Swap Dealer Definition Becomes Effective

CW
Cadwalader, Wickersham & Taft LLP

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The CFTC final rule amending the definition of "swap dealer" was published in the Federal Register. The rule is effective as of November 13, 2018.
United States Finance and Banking

The CFTC final rule amending the definition of "swap dealer" was published in the Federal Register. The rule is effective as of November 13, 2018.

As previously covered, the final rule sets the de minimis aggregate gross notional amount threshold level at $8 billion in swap-dealing activity entered into by a person over the preceding 12-month period. The current rule provides for a threshold of $3 billion, subject to a "phase-in" amount of $8 billion.

Commentary / Nihal Patel

Given that the CFTC passed on making changes to the de minimis rules beyond leaving the amount at $8 billion, the most interesting part of the release is the summary of comments on the broader proposals and the CFTC response to those comments. Commissioner J. Christopher Giancarlo emphasized that the CFTC would continue to analyze the issues raised in the proposal. The adopting release provides tea leaves for those interested in considering where the CFTC might come out on further changes to the de minimis rules.

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