Who is swap dealers

So to net their positions they use swap called 'overnight'. Learn about the swap transactions that swap dealers are involved in. See our definition of swap transactions. View all articles. Our Global Offices. Indices Forex Commodities Cryptocurrencies Shares. MicroSectors U. Spread betting Stock Investing Charges and fees. For traders. News and features. Webinars Economic calendar Capital.

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Investing Investing Essentials. What Is a Swap Dealer? Key Takeaways A swap dealer facilitates transactions in swaps contracts, acting as principal or agent. This means that an entity will not be considered a swap dealer unless the aggregate notional amount of its deals exceeds that figure. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

We also reference original research from other reputable publishers where appropriate. A swap dealer is an entity that acts as a market maker for swap transactions. Prior to the Dodd-Frank Act , swap dealer was a general term used to describe the people and firms involved in the pricing and trading of swaps. Major banking institutions such as J.

Morgan , Bank of America , and Barclays Capital , as well as investment bankers such as Goldman Sachs would be considered swap dealers. The Dodd-Frank Act calls for significant regulation of swap dealers and major swap participants. A swap dealer or security -based swap dealer is a person or entity that:.