Swap Regulators Said to Weigh Dealer Threshold of $8 Billion
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U.S. derivatives regulators are considering a threshold as high as $8 billion for determining which banks, hedge funds and energy firms are swap dealers under the Dodd-Frank Act, according to two people briefed on the rule.
The Securities and Exchange Commission and Commodity Futures Trading Commission are debating when the aggregate gross notional value of a company’s transactions should require registration as a swap dealer, according to the people, who spoke on condition of anonymity because the rulemaking process isn’t public. The agencies proposed a $100 million threshold in 2010, then this year considered setting a $3 billion rule and are debating a threshold as high as $8 billion, the people said.