Legal Definition of Swap Dealer

What is Legal Definition of Swap Dealer?

Legal Definition of Swap Dealer meaning (49) Swap dealer (A) In general The term “swap dealer” means any person who— (i)holds itself out as a dealer in swaps; (ii)makes a market in swaps; (iii)regularly enters into swaps with counterparties as an ordinary course of business for its own account; or (iv)engages in any activity causing the person to be commonly known in the trade as a dealer or market maker in swaps, provided however, in no event shall an insured depository institution be considered to be a swap dealer to the extent it offers to enter into a swap with a customer in connection with originating a loan with that customer. (B) Inclusion A person may be designated as a swap dealer for a single type or single class or category of swap or activities and considered not to be a swap dealer for other types, classes, or categories of swaps or activities. (C) Exception The term “swap dealer” does not include a person that enters into swaps for such person’s own account, either individually or in a fiduciary capacity, but not as a part of a regular business. (D) De minimis exception The Commission shall exempt from designation as a swap dealer an entity that engages in a de minimis quantity of swap dealing in connection with transactions with or on behalf of its customers. The Commission shall promulgate regulations to establish factors with respect to the making of this determination to exempt.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary