On June 4, 2018, at the CFTC's open meeting, the CFTC voted to propose rules that would permanently maintain the swap dealer de minimis registration threshold at $8 billion. The Commission voted 2-1 to issue the proposal, with Chairman J. Christopher Giancarlo and Commissioner Brian Quintenz voting in favor and Commissioner Rostin Behnam dissenting.
Under the proposed rule, firms with less than $8 billion in notional value of OTC derivatives would be exempted from the CFTC's swap dealer registration requirements, as under the current regime. The proposed rule also would exclude swaps of insured depository institutions made in connection with loans from a firm's notional calculation. The proposal seeks comment on a number of other potential exclusions from the de minimis threshold, and Chairman Giancarlo stated that the CFTC is exploring with its counterparts at the SEC and prudential regulators further potential exclusions from swap dealer registration.
The de minimis threshold is currently scheduled to be lowered to $3 billion on December 31, 2019, absent further action by the CFTC.
The CFTC also voted 2-1 to propose changes to the Volcker Rule, consistent with the proposed changes previously released by the Board of Governors of the Federal Reserve System. As one of the five regulators responsible for overseeing the rule, the CFTC's approval is required for any proposed changes.
Chairman Giancarlo's opening remarks are available at: https://www.cftc.gov/PressRoom/SpeechesTestimony/giancarlostatement060418, Commissioner Behnam's opening remarks are available at: https://www.cftc.gov/PressRoom/SpeechesTestimony/behnamstatement060418, Commissioner Quintenz's opening remarks are available at: https://www.cftc.gov/PressRoom/SpeechesTestimony/quintenzstatement060418.
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