Banks Win Loan-Risk Exemption From CFTC Swap Dealer Registration

March 25, 2019, 5:39 PM UTC

The Commodity Futures Trading Commission approved a rule March 25 that excludes swap contracts that banks use to help customers hedge loan risk from an $8 billion threshold for determining which lenders must register as dealers.

The Republican-led commission voted 3-2 along party lines for the exclusion, that backers say will help borrowers hedge against rising loan costs. The dealer-registration requirement, which was mandated by the Dodd-Frank Act, imposes stricter margin and capital rules.

Commissioner Comments

  • “These amendments are absolutely essential to helping rationalize the de minimis threshold and ensure that end-users and Main Street businesses don’t suffer from an ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.