On March 25, the Commodity Futures Trading Commission adopted an amendment to the definition of a swap dealer found in CFTC Rule 1.3 to allow certain insured depository institutions (IDIs) to provide risk mitigating swaps to customers in connection with the origination of loans without counting the swaps towards their de minimis threshold. Under CFTC Rule 1.3, an entity that would otherwise be required to be registered as a swap dealer is exempt from registration if the swaps the entity enters into over the course of the immediately preceding 12 months have an aggregate gross notional amount of no more than $8 billion. The amendment provides that, in calculating its aggregate gross notional amount, an IDI may exclude swaps entered into with a customer in connection with originating a loan to that customer, subject to the terms and conditions set out in the amendment.

The Rule is available here.