[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR35.1]

[Page 407-408]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 35_EXEMPTION OF SWAP AGREEMENTS--Table of Contents
 
Sec.  35.1  Definitions.

    (a) Scope. The provisions of this part shall apply to any swap 
agreement which may be subject to the Act, and which has been entered 
into on or after October 23, 1974.
    (b) Definitions. As used in this part:
    (1) Swap agreement means:
    (i) An agreement (including terms and conditions incorporated by 
reference therein) which is a rate swap agreement, basis swap, forward 
rate agreement, commodity swap, interest rate option, forward foreign 
exchange agreement, rate cap agreement, rate floor agreement, rate 
collar agreement, currency swap agreement, cross-currency rate swap 
agreement, currency option, any other similar agreement (including any 
option to enter into any of the foregoing);
    (ii) Any combination of the foregoing; or
    (iii) A master agreement for any of the foregoing together with all 
supplements thereto.
    (2) Eligible swap participant means, and shall be limited to the 
following persons or classes of persons:
    (i) A bank or trust company (acting on its own behalf or on behalf 
of another eligible swap participant);
    (ii) A savings association or credit union;

[[Page 408]]

    (iii) An insurance company;
    (iv) An investment company subject to regulation under the 
Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) or a foreign 
person performing a similar role or function subject as such to foreign 
regulation, Provided That such investment company or foreign person is 
not formed solely for the specific purpose of constituting an eligible 
swap participant;
    (v) A commodity pool formed and operated by a person subject to 
regulation under the Act or a foreign person performing a similar role 
or function subject as such to foreign regulation, provided that such 
commodity pool or foreign person is not formed solely for the specific 
purpose of constituting an eligible swap participant and has total 
assets exceeding $5,000,000;
    (vi) A corporation, partnership, proprietorship, organization, 
trust, or other entity not formed solely for the specific purpose of 
constituting an eligible swap participant (A) which has total assets 
exceeding $10,000,000, or (B) the obligations of which under the swap 
agreement are guaranteed or otherwise supported by a letter of credit or 
keepwell, support, or other agreement by any such entity referenced in 
this paragraph (b)(2)(vi)(A) of this section or by an entity referred to 
in paragraph (b)(2) (i), (ii), (iii), (iv), (v), (vi) or (viii) of this 
section; or (C) which has a net worth of $1,000,000 and enters into the 
swap agreement in connection with the conduct of its business; or which 
has a net worth of $1,000,000 and enters into the swap agreement to 
manage the risk of an asset or liability owned or incurred in the 
conduct of its business or reasonably likely to be owned or incurred in 
the conduct of its business;
    (vii) An employee benefit plan subject to the Employee Retirement 
Income Security Act of 1974 or a foreign person performing a similar 
role or function subject as such to foreign regulation with total assets 
exceeding $5,000,000, or whose investment decisions are made by a bank, 
trust company, insurance company, investment adviser subject to 
regulation under the Investment Advisers Act of 1940 (15 U.S.C. 80a-1 et 
seq.), or a commodity trading adviser subject to regulation under the 
Act;
    (viii) Any governmental entity (including the United States, any 
state, or any foreign government) or political subdivision thereof, or 
any multinational or supranational entity or any instrumentality, 
agency, or department of any of the foregoing;
    (ix) A broker-dealer subject to regulation under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.) or a foreign person 
performing a similar role or function subject as such to foreign 
regulation, acting on its own behalf or on behalf of another eligible 
swap participant: Provided, however, That if such broker-dealer is a 
natural person or proprietorship, the broker-dealer must also meet the 
requirements of either paragraph (b)(2) (vi) or (xi) of this section;
    (x) A futures commission merchant, floor broker, or floor trader 
subject to regulation under the Act or a foreign person performing a 
similar role or function subject as such to foreign regulation, acting 
on its own behalf or on behalf of another eligible swap participant: 
Provided, however, that if such futures commission merchant, floor 
broker, or floor trader is a natural person or proprietorship, the 
futures commission merchant, floor broker, or floor trader must also 
meet the requirements of paragraph (b)(2) (vi) or (xi) of this section; 
or
    (xi) Any natural person with total assets exceeding at least 
$10,000,000.