CFTC considers higher threshold for swap dealers

The SEC and the CFTC are debating over raising the swap threshold up to $8 billion in order to determine which derivatives traders should be classified as “swap dealers.”

Initially in 2010 the CFTC proposed that the threshold should be set at $100 million. Since that time the regulator has increased the amount, indicating last month that the cutoff would be at $3 billion. Regulators continue to delay a final vote on the definition of swap dealers, as they continue to try and find common ground on the classification.

The Commission will vote on the definition of swap dealer and major swap participant on April 18.

Update: The CFTC and SEC voted to reduce the number of companies subject to swaps requirement by raising the threshold to $8 billion on April 18.

Read more about the debate.

Photo credit: bucklava

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