CFTC-Proposed Rule Amendment Regarding De Minimis Threshold for Entities Entering into Swaps with Utility Special Entities Published (Fed. Reg.)

The CFTC rule proposal amending the de minimis threshold for an entity that enters into swaps with utility special entities was published in the Federal Register.

The rule amendment would, among other things, permit a person to exclude utility operations related to swaps with utility special entities in calculating the aggregate gross notional amount of the person's swap positions solely for purposes of the de minimis exception applicable to swaps with special entities.

Additionally, the rule would allow a person, in any rolling twelve-month period, to deal in utility-related swaps with utility special entities up to an aggregate gross notional amount that does not exceed (together with other swaps in which the person was engaged) the "General De Minimis Threshold" (currently $8 billion) without registering as a swap dealer.

Comments on this proposal must be submitted by July 2, 2014.

See: 79 FR 31238.Related news: CFTC Announces Three Actions to Clean up Problems with Swaps Regulations (with Lofchie Comment) (CFTC Letter 14-72) (May 22, 2014); CFTC No-Action Letter (14-34) Raises De Minimis Threshold for Swaps with Utility Special Entities (with Lofchie Comment) (March 21, 2014).To stay up to date with all CFTC-proposed rules, please see the Cabinet's Rule Calendars (accessible to Cabinet subscribers only).