- Follows final amendment of de minimis requirements for bank dealers.
- Also follows permanent de minimis threshold at $8bn for swap dealers.
- Present data and specific analysis, focus is regarding on-venue and cleared swaps.
- To study alternative metrics for calculating swap dealer (SD) de minimis threshold.
- Giancarlo instructed DSIO to carry out study, see if cleared swaps can be removed.
- Measures estimated 'regulatory coverage' of market (percentage of market subject to swap dealer regulation) under various 'exclusion scenarios' from $8bn threshold.
- If removed cleared on exchange, 99.95% of market still covered by SD regulation.
- Commissioner Quintenz spoke, said study confirms cleared and exchange-traded
swaps could be removed from calculation with no lowering of regulatory coverage.
- Can be done without sacrificing the regulatory protections at core of swap regime.
- Floor traders have removed these per June 2019 rule, should extend.
- Also highlights glaring deficiency of using notional value as registration threshold
triggering swap dealer registration, need to move toward adopting better metrics.