(a) A person qualifies as a financial institution
for purposes of sections 401-407 of the Act if it represents, orally
or in writing, that it will engage in financial contracts as a counterparty
on both sides of one or more financial markets and either—
(1) had one or more financial contracts
of a total gross dollar value of at least $1 billion in notional
principal amount outstanding at such time or on any day during the
previous 15-month period with counterparties that are not its affiliates;
or
(2) had total gross mark-to-market
positions of at least $100 million (aggregated across counterparties)
in one or more financial contracts at such time or on any day during
the previous 15-month period with counterparties that are not its
affiliates.
(b) After two or more persons consolidate,
such as through a merger or acquisition, the surviving person meets
the quantitative thresholds under paragraphs (a)(1) and (a)(2) if,
on the same, single calendar day during the previous 15-month period,
the aggregate financial contracts of the consolidated persons would
have met such quantitative thresholds.
9-1479
(c) If a person qualifies
as a financial institution under paragraph (a), that person will be
considered a financial institution for the purposes of any contract
entered into during the period it qualifies, even if the person subsequently
fails to qualify.
(d) If a person qualifies as a financial
institution under paragraph (a) on March 7, 1994, that person will
be considered a financial institution for the purposes of any outstanding
contract entered into prior to March 7, 1994.
(e) A person
qualifies as a financial institution for purposes of sections 401-407
of the Act if it is—
(1)
a swap dealer or major swap participant registered with the Commodity
Futures Trading Commission pursuant to section 4s of the Commodity
Exchange Act (7 U.S.C. 6s);
(2)
a security-based swap dealer or major security-based swap participant
registered with the U.S. Securities and Exchange Commission pursuant
to section 15F of the Securities Exchange Act of 1934 (15 U.S.C. 78o-10);
(3) a derivatives clearing organization
registered with the Commodity Futures Trading Commission pursuant
to section 5b(a) of the Commodity Exchange Act (7 U.S.C. 7a-1(a))
or a derivatives clearing organization that the Commodity Futures
Trading Commission has exempted from registration by rule or order
pursuant to section 5b(h) of the Commodity Exchange Act (7 U.S.C.
7a-1(h));
(4) a clearing agency
registered with the U.S. Securities and Exchange Commission pursuant
to section 17A(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78q-1(b)) or a clearing agency that the U.S. Securities and Exchange
Commission has exempted from registration by rule or order pursuant
to section 17A(k) of the Securities Exchange Act of 1934 (15 U.S.C.
78q-1(k));
(5) a financial market
utility that the Financial Stability Oversight Council has designated
as, or as likely to become, systemically important pursuant to 12
U.S.C. 5463;
(6) a qualifying central
counterparty under 12 CFR 217.2;
(7) a nonbank financial company that the Financial Stability Oversight
Council has determined shall be supervised by the Board and subject
to prudential standards, pursuant to 12 U.S.C. 5323;
(8) a foreign bank as defined in section
1(b) of the International Banking Act of 1978 (12 U.S.C. 3101), including
a foreign bridge bank;
(9) a bridge
institution established for the purpose of resolving a financial institution;
(10) a Federal Reserve Bank or a foreign
central bank; or
(11) the Bank for
International Settlements.
