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CFTC Report Concerning On-Venue and Cleared Swaps

On July 8, the staff of the Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission issued a report containing data and analysis concerning possible exclusions from the calculation of the swap dealer de minimis registration threshold for swaps executed on a regulated exchange and/or cleared by a derivatives clearing organization. The report has numerous charts that estimate the number of registered swap dealers that would drop out of registration under various exclusion scenarios. While it is long on data, the report is short on explicit conclusions. However, Commissioner Brian Quintenz issued an accompanying statement that gives his views on the significance of the report: “First, the report shows that the removal of exchange-traded and cleared swaps from the de minimis calculation would result in no reduction of regulatory coverage. Second, the report highlights once again the glaring deficiencies of using notional value as the registration threshold triggering swap dealer registration.”

The CFTC report is available here.

The accompanying statement from Commissioner Quintenz is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume IX, Number 193


About this Author

Guy Dempsey Jr., Bank Regulations Legal Specialist, Katten Muchin

Guy C. Dempsey Jr. concentrates his practice on derivatives and structured products and on bank regulation. He advises clients on derivatives transactions of all types across all asset classes, as well as on the corporate governance, regulatory, collateral, compliance, insolvency and litigation issues associated with such products.

Much of Guy’s work involves helping bank and non-bank clients analyze the details and impact of the Dodd-Frank Act. He maintains deep knowledge of the banking laws and regulations relating to capital markets activities....