Major Swap Participant Law and Legal Definition

The term "major swap participant" means any person who is not a swap dealer:

a. who maintains a substantial position in swaps for any of the major swap categories as determined by the Commission;

b. whose outstanding 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

c. is a financial entity that is highly leveraged relative to the amount of capital it holds and that is not subject to capital requirements established by an appropriate Federal banking agency; and maintains a substantial position in outstanding swaps in any major swap category as determined by the Commission. [7 USCS § 1a].