Major Security Based Swap Participant Law and Legal Definition

The term "major security-based swap participant" means any person:

a. who is not a security-based swap dealer;

b. who maintains a substantial position in security-based swaps for any of the major security-based swap categories; or

c. whose outstanding security-based swaps create substantial counterparty exposure that could have serious adverse effects on the financial stability of the United States banking system or financial markets; or that is a financial entity that is highly leveraged relative to the amount of capital such entity holds and that is not subject to capital requirements established by an appropriate Federal banking agency; and maintains a substantial position in outstanding security-based swaps in any major security-based swap category, as such categories are determined by the Commission. [15 USCS § 78c].