What is a major security-based swap participant?
A person that is a major security-based swap participant in general shall be deemed to be a major security-based swap participant with respect to each security-based swap it enters into, regardless of the category of the security-based swap or the person’s activities in connection with the security-based swap, unless …
Who are the largest swap dealers?
Those four U.S. swaps dealers are Citibank, JPMorgan Chase, Goldman Sachs and Bank of America. Each of these four big U.S. bank holding swaps dealers is headquartered in the U.S. and has its principal place of business there.
Who are swap dealers?
A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps …
What is SD MSP?
Swap Dealers (SDs) and Major Swap Participants (MSPs) are twin pillars of Dodd-Frank’s comprehensive regulation of swaps. The statute defines SDs and MSPs as mutually exclusive entities and then sets out parallel regulatory authorizations for them.
What is a swap dealer under Dodd-Frank?
According to Section 721 of the Dodd-Frank Act, a swap dealer is an entity that: Holds itself out as dealer in swaps; Makes a market in swaps; Regularly enters into swaps with counterparties as an ordinary course of business for its own account; or.
What is a securities based swap?
— The term “security-based swap” includes any agreement, contract, or transaction that is as described in subparagraph (A) and also is based on the value of 1 or more interest or other rates, currencies, commodities, instruments of indebtedness, indices, quantitative measures, other financial or economic interest or …
Is Goldman Sachs a swap dealer?
The order finds that Goldman, to comply with its recordkeeping obligations as a swap dealer, began using recording hardware to record the phone lines of trading and sales desks in March 2013.
Who must register as a swap dealer?
Every swap dealer and MSP must register as such with the appropriate regulator under rules required to be promulgated within one year of enactment of the Act. Dual registration is required for swap dealers or major swap participants engaging in both swap and security-based swap transactions.
What is a swap associated person?
An associated person (AP) is an individual who solicits orders, customers or customer funds (or who supervises persons so engaged) on behalf of a futures commission merchant (FCM), retail foreign exchange dealer (RFED), introducing broker (IB), commodity trading advisor (CTA) or commodity pool operator (CPO).
What are SEF trades?
Key Takeaways. Swap execution facilities (SEFs) are trading platforms intended for swaps products. They are mandated under the Dodd-Frank Wall Street Reform Act of 2010. Because of the complex nature of swaps, these platforms are not exchanges per se but they do function as a counterparty matching service.
Is JPMorgan a swap dealer?
December 31, 2012, JPMorgan is provisionally registered with the Commission as a swap dealer.
What is the difference between a swap and a security-based swap?
As a general rule, a TRS on a single security, loan or narrow-based security index would be a security-based swap and a TRS on a broad-based security index or on two or more loans would be a swap.
What are the risks faced by a swap dealer?
A major risk faced by a swap dealer is credit risk. This is: a) The probability that counter-party will default. b) The probability that swap banks will default.
How do banks profit from swaps?
The bank’s profit is the difference between the higher fixed rate the bank receives from the customer and the lower fixed rate it pays to the market on its hedge. The bank looks in the wholesale swap market to determine what rate it can pay on a swap to hedge itself.
Is Morgan Stanley a swap dealer?
Morgan Stanley Capital Services LLC is a Delaware limited liability company with its principal place of business in New York, New York, and has been provisionally registered as a swap dealer with the Commission since December 31, 2012.
Is a swap dealer a broker dealer?
A swap dealer is an individual or entity that serves as a swaps broker, makes markets in swaps, or enters into swaps contracts with counterparties.