Concern remains over new US swap dealer rules

Author: | Published: 27 Apr 2012

US banks and companies transacting less than $8 billion in swaps will not have to register with the Securities & Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC) as swap dealers in accordance with rules jointly finalised by the agencies on April 18. But there remains concern swap dealers will drop out of the market.

The de minimis exemption threshold of $8 billion for credit default swaps and commodity-based swaps is scheduled to drop to $3 billion five years after the rules are implemented. But regulators are to conduct reports and may propose rules creating new de minimis levels a little over three years...