What is a swap dealer


A switch provider (SD) is an entity that holds itself out as a supplier in swaps; makes a market in swaps; frequently enters into swaps with counterparties as an regular path of enterprise for its very own account; or engages in any hobby inflicting the choices entity to be usually known in the trade as a supplier or market maker in swaps. See CFTC Regulation 1.three for exceptions and boundaries.

For example, entities are exempt from the choices SD registration on the basis of de minimis interest—the choices aggregate gross notional quantity of the choices swaps that an entity enters into over the choices prior twelve months in reference to dealing activities. Currently, the choices de minimis threshold is $eight billion.

All registered and provisionally registered SDs ought to be NFA Members.

what is a swap

Registration Requirements for SDs

To provisionally register as a SD and emerge as an NFA Member:

Registration Requirements for Principals and Associated Persons of SDs

A SD is required to listing principals, as described in CFTC Regulation three.1(a). A SD is required to document the subsequent for its principals:

An utility fee for principals isn’t always required if the choices character is currently registered with the CFTC in any potential or is indexed as a foremost of a present day CFTC registrant.

Associated humans (AP) of an SD do not need to sign up with the choices CFTC. However, individuals who are trying to find to act as AP of an SD are required to finish NFA’s Swaps Proficiency Requirements prior to acting in the capability of an AP at an SD.

In addition, it’s miles the SD’s responsibility to determine whether a statutory disqualification exists for any of its APs. Section 4s(b)(6) of the Commodity Exchange Act (CEA) and CFTC Regulation 23.22(b) limit SDs from permitting an AP who is subject to a statutory disqualification beneath Section 8a(2) or 8a(3) of the CEA to have an effect on or be worried in affecting swaps on behalf of the choices SD, if the choices SD is aware of of the statutory disqualification.

If a statutory disqualification exists, the SD may also choose to document a Statutory Disqualification Form thru EasyFile for a determination as to whether NFA could have granted the person registration as an AP no matter the statutory disqualification. Click here for extra information regarding the choices AP Statutory Disqualification Form Submission Process.

Access NFA’s Online Registration System