Major Swap Participant. An MSP, like an SD, is required to register with the CFTC and is subject to many of the regulations that apply to SDs. A market participant that is not an SD may be required to register as an MSP based on its “substantial position” in any of the major swap categories, its swaps creating counterparty exposure with potentially serious adverse effects on US financial stability, or its being a financial entity that is highly leveraged relative to its capital (and not subject to banking capital requirements).

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