Regulatory Alerts2014-09-26 | 2014-22966Exclusion of Utility Operations-Related Swaps With Utility Special Entities From De Minimis Threshold for Swaps With Special Entities
The Commodity Futures Trading Commission is amending its regulations to allow persons to exclude utility operations-related swaps entered into with utility special entities when calculating their aggregate gross notional amount for the special entity de minimis threshold. This final rule permits these specific swaps to be counted against the higher general de minimis threshold rather than the lower $25 million special entity limit, thereby reducing the likelihood that counterparties must register as swap dealers. The change aims to ensure uninterrupted access to customized commodity swaps necessary for utility special entities to hedge commercial risks and maintain continuous energy services.
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