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The CFTC proposed to amend the de minimis exception within its
regulations' "swap dealer" definition in several
ways, including:
Setting the aggregate gross notional
amount threshold for the de minimis exception at $8 billion in swap
dealing activity entered into by a person over the preceding 12
months;
Excepting from consideration when
calculating the aggregate gross notional amount of a person's
swap dealing activity for purposes of the de minimis threshold:
Swaps entered into with a customer by an insured depository
institution in connection with originating a loan to that
customer;
Swaps entered into to hedge financial
or physical positions; and
Swaps resulting from multilateral
portfolio compression exercises.
The proposal further provides that the CFTC may determine the
methodology to be used to calculate the notional amount for any
group, category, type or class of swaps, and delegates to the
director of the Division of Swap Dealer and Intermediary Oversight
(DSIO) the authority to make such determinations.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
