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Federal Register: CFTC Proposes Swap Dealer De Minimis Amendments

The CFTC requested public comment on a proposal to amend the swap dealer de minimis exception. Comments must be submitted by August 13, 2018.

As previously described, the proposed amendments to the definition of "swap dealer" in CFTC Rule 1.3 (f/k/a Rule 1.3(ggg)) would:

  • leave the threshold at $8 billion (removing the automatic drop to $3 billion);
  • add exceptions for (1) swaps entered into by banks in connection with loans to customers; (2) hedging swaps; and (3) swaps resulting from compression exercises (consistent with CFTC Letter 12-62); and
  • delegate to the director of the CFTC Division of Swap Dealer and Intermediary Oversight the authority to determine the methodology for calculating notional amounts.

The CFTC is also requesting comment on (i) adding exclusions from registration for persons who deal in fewer than a specified number of transactions or with a specified number of counterparties, (ii) excluding exchange-traded and/or cleared swaps from the de minimis calculation and (iii) excluding non-deliverable foreign exchange forwards from the de minimis calculation.

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