On September 26, 2014, the Commodity Futures Trading Commission (“CFTC”) published a final rule in the Federal Register permitting a person to exclude “utility operations-related swaps” entered into with “utility special entities” in calculating the aggregate gross notional amount of the person’s swaps positions for purposes of the de minimis exception from swap dealer registration applicable to swaps with special entities (“Final Rule”).1 The Final Rule codifies previously granted no-action relief, with certain modifications.

BACKGROUND -

CFTC Regulation 1.3(ggg)(4)(i), 17 C.F.R. 1.3(ggg)(4)(i), provides for a de minimis exception from swap dealer registration for any person that enters into swaps connected with swap dealing activities, the aggregate gross notional amount of which does not exceed during the preceding 12 months one of two thresholds...