Regulatory Alerts2014-06-02 | 2014-12469Exclusion of Utility Operations-Related Swaps With Utility Special Entities From De Minimis Threshold for Swaps With Special Entities
The Commodity Futures Trading Commission proposes to amend its regulations to allow persons to exclude utility operations-related swaps with utility special entities from the aggregate gross notional amount used to calculate the de minimis exception for swaps with special entities. This change addresses concerns raised by industry petitioners that the current $25 million threshold for special entities restricts access to necessary hedging instruments for public power utilities. The proposal aims to preserve uninterrupted and cost-effective access to customized commodity swaps while ensuring counterparties are not forced to register as swap dealers for these specific utility-related transactions.
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