Units of JPMorgan Chase & Co., Goldman Sachs Group Inc. and Barclays Plc are among banks that registered as swap dealers under the Dodd-Frank Act that requires higher capital, collateral and trading standards.
The list of firms referred to as “provisionally registered” included Societe Generale SA, Macquarie Bank Ltd., Newedge USA LLC, Morgan Stanley and Standard Chartered Bank, according to the website of the National Futures Association. No firms were listed as major swap participants, a lower threshold under Dodd Frank for activity that may capture energy companies or hedge funds.
The rules, more than two years in the making, will improve oversight of a market that for three decades has largely escaped federal regulation, Commodity Futures Trading Commission Chairman Gary Gensler said Oct. 10.
The financial firms that dominate swap dealing generate more than $30 billion in annual profit, according to an estimate from consulting firm Oliver Wyman, a unit of Marsh & McLennan Cos. Companies with $8 billion or more in dealing business must register with the CFTC.
The biggest swaps dealer in the U.S. is JPMorgan with $72 trillion in derivatives contracts outstanding at the end of September, according to the Office of the Comptroller of the Currency. Bank of America Corp. follows with $64 trillion and Citigroup Inc. with $55 trillion. There’s no comparable ranking for banks globally.