Japan dealers stop back-loading to CCPs due to de minimis uncertainty

CFTC rule potentially captures legacy trades novated to CCPs


Dealers in Japan are no longer back-loading older trades with US persons to clearing houses due to uncertainty around whether trades will fall within the $8 billion de minimis bucket that counts towards registering as a swap dealer with the Commodity Futures Trading Commission (CFTC).

Ever since the CFTC outlined that banks with significant US derivatives businesses should be subject to US rules, dealers in Asia have been keen to bypass what is widely perceived as an extraterritorial application

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