Swaps Dealer Threshold Set

Regulators say companies with more than $8 bln in annual business face additional oversight.

U.S. regulators voted today to define which companies will face new oversight in the $708 trillion global swaps market, where largely unregulated trades helped fuel the 2008 financial crisis.

A rule approved unanimously by the Securities and Exchange Commission today and awaiting a Commodity Futures Trading Commission vote will initially define a regulated dealer as one that conducts swaps with a notional value of at least $8 billion in a 12-month period. The banks, hedge funds and energy firms defined as swap dealers will be subject to the highest capital and collateral requirements for market participants.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.