In a market-friendly move, the Chairman of the CFTC has recommended delaying reduction of the threshold for Swap Dealer registration. We applaud that move, and believe the $3billion threshold may simply capture too many unintended parties.
Smaller swap-dealing firms may get a one-year reprieve from oversight as the chairman of the agency that regulates the U.S. derivatives market on Thursday urged delaying the planned expansion of a requirement determining which dealers must register with the federal government. Since 2012, any dealer with more than $8 billion in swap activity has been required to register with the Commodity Futures Trading Commission, which subjects it to stricter federal oversight. That swap activity value in dollars, known as the "de minimis" threshold, is now poised to fall to $3 billion by the end of 2017. CFTC Chairman Timothy Massad said the planned drop will force dealers to begin tracking their activity from Jan. 1 to determine if they would need to register. The three commission members must vote to make the delay official.