17 CFR 1.3 provides that a person that is not registered is deemed not to be a swap dealer under two conditions (as of October 2026). First, the swaps connected with its dealing activity, entered into by it or by any entity under common control with it over the preceding 12 months, have an aggregate gross notional amount of no more than USD 8 billion. Second, the amount is no more than USD 25 million for swaps with a special entity as counterparty.
Consider a hypothetical example in which a person's own dealing swaps total USD 5 billion and those of an affiliate under the same control total USD 4 billion. The aggregate is USD 9 billion and the exception is not available. With an affiliate at USD 2 billion, the aggregate is USD 7 billion and it is available.
A person that crosses the threshold is not deemed a swap dealer immediately. The deemed exception continues until the earlier of the date it submits a complete registration application and two months after the end of the month in which it crossed. A person within the threshold may also register voluntarily.