What is a special entity CFTC?

A Special Entity under the final rules is defined as: 1) a Federal agency; 2) a State, State agency, city, county, municipality, or other political subdivision of a State, or any instrumentality, department, or a corporation of or established by a State or political subdivision of a State; 3) any employee benefit plan …

What is a special entity?

Special Entity means any Restricted Subsidiary that is not a Wholly-Owned Subsidiary that (i) is classified as a pass-through entity for U.S. federal, state, local and foreign income tax purposes and (ii) has no Indebtedness.

What does it mean to be a swap dealer?

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 a Category 2 entity?

Category 2 Entities include commodity pools; private funds as defined in Section 202(a) of the Investment Advisors Act of 1940, other than active funds; or persons predominantly engaged in activities that are in the business of banking, or in activities that are financial in nature as defined in Section 4(k) of the …

What qualifies as an eligible contract participant?

An eligible contract participant (ECP) is an entity or individual allowed to engage in certain financial transactions that are not open to the average investor. ECPs are often corporations, partnerships, organizations, trusts, brokerage firms, or investors that have total assets in the millions.

What is a swap entity?

Related Definitions Swap entity means a person that is registered with the Commission as a swap dealer or major swap participant pursuant to the Act.

Are eligible contract participants special entities?

Eligible Contract Participants and Special Entities Generally, the term includes those persons or entities that satisfy either various asset size tests or are subject to certain regulatory regimes.

What is a financial entity under the CEA?

Under the CEA, a “financial entity” is defined as a (i) swap dealer, (ii) security-based swap. dealer, (iii) major swap participant, (iv) major security-based swap participant, (v) commodity. pool, (vi) private fund,4 (vii) employee benefit plan,5 or (viii) person predominantly engaged in.

Are you an eligible contract participant?

(18) Eligible contract participant The term “eligible contract participant” means— (A) acting for its own account— (i) a financial institution; (ii) an insurance company that is regulated by a State, or that is regulated by a foreign government and is subject to comparable regulation as determined by the Commission.

Is JPMorgan a swap dealer?

JPMorgan Chase Bank, N.A. is provisionally registered with the Commission as a swap dealer and provides consumer finance, investment banking, commercial banking, and other services.

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.

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.

Why are swaps so popular?

Interest Rate Swaps are popular products for the following reasons; They are comparable in risk terms and maturity terms to bonds, which span a multi-trillion dollar industry, and can be utilised in similar ways to bonds.