Major Swap Participant (MSP) | Practical Law
Major Swap Participant (MSP)
Enter to open, tab to navigate, enter to select
US Home
Global Home
NEW
Sign in
Sign in
All content
Search:
Search Westlaw
Search Tips
Advanced
Major Swap Participant (MSP)
Practical Law Glossary Item 7-555-1088
(Approx. 3 pages)
Glossary
Major Swap Participant (MSP)
Designation under Title VII of the Dodd-Frank Act for any entity whose
non-security-based swap
activity satisfies one of three tests, including the "substantial position" test and the "substantial counterparty exposure" test, in certain categories of swap activity, but which is less than the de minimis
notional amount
of swap activity required for designation as a
swap dealer
under Title VII (see
Practice Note, US Derivatives Regulation: Swap Dealer and SBSD Registration Thresholds: Definitions of Major Swap Participant (MSP) and Major Security-Based Swap Participant (MSBSP)
). MSPs must register with the CFTC and are subject to an extensive framework of regulatory requirements under Title VII rulemaking, including internal and external business conduct rules and other obligations and restrictions (see
US Derivatives Regulation: Requirements for Swap Dealers and MSPs Checklist
) regardless of whether or not they are located in the US (see
Practice Note, US Derivatives Regulation: Cross-Border Application of Swaps Rules
). Though the notional threshold is lower for MSPs than for SDs, there are many more registered SDs than registered MSPs.