1.

3(ggg)(4) Swap Dealer De Minimis Exception - Decision Flow Chart

Swap
dealing
activity?

Swap Dealer
(No de minimis)

1.3(ggg)(4)(i) states: person (a) not currently registered as SD (b) shall be deemed
not to be a SD as result of swap dealing activity involving counterparties (c) so long
as the swap positions connected with those dealing activities (d) [entered] over the
course of the immediately preceding [period], (e) have an aggregate gross notional
amount of no more than [eg, equivalent to 50,000 GC @ $1600 over 12 months]

Part II.A.4 Statutory Tests

Definition of Swap, etc.

Yes

Not
Swap Dealer

No

De minimis exception
1.3(ggg)(4)(i)

Swap Dealer
clock not ticking

Registered?

Yes

$3 billion is equivalent
to 18,750 gold futures
contracts @ px = $1600

(i) Federal Agency; (ii) State, State agency, city,

county, municipality; (iii) employee benefit plan;
(iv) any governmental plan; or (v) any endowment

Effective: 10/12/2012
No
d

No

Activity
preceding
12 mths?

$1a(47) Final
Rule pub?

Voluntary registration
1.3(ggg)(4)(vi)

Act 4s(b) [77 FR 2613]

Submits complete
application for registration

Aggregate Gross Notional

Special entity counterparty 4s(h)(2)(C)

Deemed SD if >$25 mil.

Yes

1.3(ggg)(4)(iii)
Two mths after month-end
exception not applicable

Not Swap Dealer

if <$3 billion
Aggregate Gross Notional

Swap Dealer
Registration

Earlier of...

Phase in level: $25 mil.

Not deemed SD
if <$25 million*

Registration period
1.3(ggg)(4)(iii)

Yes

After
Phase in level: $3 billion

Yes

Issued 8/13/2012
+ 60 days: 10/12/2012

1a(47) Dodd-Frank
c Final Rules, Effective
Date 60 days post pub.

No

Phase-in
termination
date

Not Swap Dealer

if <$8 billion

1.3(ggg)(4)(iv)
SD Withdraw?

Applicability
1.3(ggg)(4)(iv)

No
Meets de minimis
(Not Swap Dealer)

1.3(ggg)(4)(iv)
SD may apply to withdraw
provided registered 12 mths

[A] SDR Decision Tree

Swap Data Reporting
Compliance Effective Date

Earlier of
(4)(ii)(C) or
(D)?

1.3(ggg)(4)(ii)(C)
Phase-in termination date
set 9 mths after Report

1.3(ggg)(4)(ii)(D)
Phase-in termination date
not established: 5 years

77 FR 2136
Swap Data Reporting
Compliance: 7/16/2012

Later of...

Swap Data Recordkeeping

Swap Data Reporting

77 FR 2136

Act 1a(49) or 1a(33)

See SDR Effective
Date Decision Tree [A]

Swap Dealer
Withdrawal

$8 billion is equivalent
to 50,000 gold futures
contracts @ px = $1600

Phase-in Period
1.3(ggg)(4)(ii)(A)

Staff report
1.3(ggg)(4)(ii)(B)

Aggregate Gross Notional

Phase in level: $8 billion

No

>Phase in
level?

Before

Activity
<12 mths since
10/12/2012?

Definition of Swap, etc.

1.3(ggg)(4)(ii)(B)
<30 months following date
SDR receives swap data

Is counterparty
special entity?

Yes

No

1.3(ggg)(4)(ii)(D)
5 years following date
SDR receives swap data

Issued 7/23/2012
+ 60 days: 9/21/2012

Act 1a(49) or 1a(33)

Final Rules, Effective
Date 60 days post pub.

Definition of SD and MSP

Act 1a(47) Final Rules

Issued, Effective Date
60 days post pub.

Issued 8/13/2012
+ 60 days: 10/12/2012

Definition of Swap, etc.

Copyright 2012 IQ3 Solutions Group

[A] Effective Date: Initiation of Swap Data Reporting