SEC Clarifies Phase-In Timeline for Swap Dealer Thresholds
SEC Chair Paul S. Atkins described the Commission’s approach to the upcoming expiration of the phase-in period for the de minimis exception to security-based swap dealer ("SBSD") registration requirements.
In a public statement, Mr. Atkins explained that SBSDs must register with the Commission if they exceed a de minimis amount of swap-dealing activity over the prior twelve months, and that the current phase-in period, which temporarily sets higher registration thresholds, is scheduled to expire on November 8, 2026. He stated that, as a result, the lower thresholds of $3 billion for credit default swaps and $150 million for non-credit default swaps would begin to apply on November 8, 2025.
He noted that Commission staff had begun preparing a report analyzing the thresholds, but that work has been paused due to the current government shutdown. Mr. Atkins stated that once normal operations resume, he will direct staff to evaluate potential relief to ensure that the lower thresholds do not take effect before the Commission can review the report and public comments. He emphasized that this approach aims to provide market participants with regulatory clarity and fairness while maintaining the Commission’s commitment to a thoughtful, data-driven review process.