Swap Dealer (SD)

The Commodity Exchange Act requires all swap dealers (SDs) to register as such, unless they qualify for an exception, e.g.:

• An insured depository institution to the extent it offers to enter into a swap with a customer in connection with originating a loan with that customer.
• A person that enters into swaps for such person’s own account, either individually or in a fiduciary capacity, but not as part of a regular business.
• A swap dealer that engages in a de minimis quantity of swap dealing in connection with transactions with or on behalf of its customers.

All registered SDs are required to be members of the National Futures Association (NFA). The NFA is a self-regulatory organization that is required to enforce CFTC-approved requirements for their members.

SDs must satisfy minimum standards for:

• Business conduct standards, including disclosure requirements
• Recordkeeping and reporting requirements
• Swap documentation requirements

Provisionally registered Swap Dealers