The U.S. Commodity Futures Trading Commission (CFTC) released a report that examines the swap dealer de minimis exception – with a focus on on-venue and cleared swaps.
The report, presented by the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO), stems from a June 2018 proposed rule change related to the swap dealer de minimis exception.
CFTC chair J. Christopher Giancarlo had requested a review of that proposed rulemaking and study possible alternative metrics for the calculation of the swap dealer de minimis threshold.
“Today’s staff report demonstrates DSIO’s commitment to using detailed swap data repository data to develop empirically-driven policy recommendations,” DSIO Director Matthew Kulkin said. “DSIO believes this staff report will assist the CFTC and market participants analyze the potential implications of certain policy proposals.”
The CFTC, along with the Securities and Exchange Commission, jointly stated in May 2012 further defining, among other things, the term “swap dealer” in CFTC regulation 1.3. That release provided for a de minimis exception to the swap dealer registration requirements.
Specifically, the de minimis exception states that a person shall not be deemed to be a swap dealer unless their swap dealing activities exceed an $8 billion aggregate gross notional amount threshold.