---
kind: "section"
citation: "12 C.F.R. § 231.3"
title: "12"
number: "231.3"
heading: "Qualification as a financial institution."
url: "https://uscodex.org/cfr/12/231.3"
---

# §231.3. Qualification as a financial institution.

- (a) A person qualifies as a financial institution for purposes of sections 401-407 of the Act if it represents, orally or in writing, that it will engage in financial contracts as a counterparty on both sides of one or more financial markets and either—
  - (1) Had one or more financial contracts of a total gross dollar value of at least $1 billion in notional principal amount outstanding at such time or on any day during the previous 15-month period with counterparties that are not its affiliates; or
  - (2) Had total gross mark-to-market positions of at least $100 million (aggregated across counterparties) in one or more financial contracts at such time or on any day during the previous 15-month period with counterparties that are not its affiliates.
- (b) After two or more persons consolidate, such as through a merger or acquisition, the surviving person meets the quantitative thresholds under paragraphs [(a)(1)](#a-1) and [(a)(2)](#a-2) if, on the same, single calendar day during the previous 15-month period, the aggregate financial contracts of the consolidated persons would have met such quantitative thresholds.
- (c) If a person qualifies as a financial institution under [paragraph (a)](#a) of this section, that person will be considered a financial institution for the purposes of any contract entered into during the period it qualifies, even if the person subsequently fails to qualify.
- (d) If a person qualifies as a financial institution under [paragraph (a)](#a) of this section on March 7, 1994, that person will be considered a financial institution for the purposes of any outstanding contract entered into prior to March 7, 1994.
- (e) **A person qualifies as a financial institution for purposes of sections 401-407 of the Act if it is—**
  - (1) A swap dealer or major swap participant registered with the Commodity Futures Trading Commission pursuant to section 4s of the Commodity Exchange Act ([7 U.S.C. 6s](/usc/7/6s.md));
  - (2) A security-based swap dealer or major security-based swap participant registered with the U.S. Securities and Exchange Commission pursuant to section 15F of the Securities Exchange Act of 1934 ([15 U.S.C. 78o-10](/usc/15/78o-10.md));
  - (3) A derivatives clearing organization registered with the Commodity Futures Trading Commission pursuant to section 5b(a) of the Commodity Exchange Act ([7 U.S.C. 7a-1(a)](/usc/7/7a-1.md?p=a)) or a derivatives clearing organization that the Commodity Futures Trading Commission has exempted from registration by rule or order pursuant to section 5b(h) of the Commodity Exchange Act ([7 U.S.C. 7a-1(h)](/usc/7/7a-1.md?p=h));
  - (4) A clearing agency registered with the U.S. Securities and Exchange Commission pursuant to section 17A(b) of the Securities Exchange Act of 1934 ([15 U.S.C. 78q-1(b)](/usc/15/78q-1.md?p=b)) or a clearing agency that the U.S. Securities and Exchange Commission has exempted from registration by rule or order pursuant to section 17A(k) of the Securities Exchange Act of 1934 ([15 U.S.C. 78q-1(k)](/usc/15/78q-1.md?p=k));
  - (5) A financial market utility that the Financial Stability Oversight Council has designated as, or as likely to become, systemically important pursuant to [12 U.S.C. 5463](/usc/12/5463.md);
  - (6) A qualifying central counterparty under [12 CFR 217.2](/cfr/12/217.2.md);
  - (7) A nonbank financial company that the Financial Stability Oversight Council has determined shall be supervised by the Board and subject to prudential standards, pursuant to [12 U.S.C. 5323](/usc/12/5323.md);
  - (8) A foreign bank as defined in section 1(b) of the International Banking Act of 1978 ([12 U.S.C. 3101](/usc/12/3101.md)), including a foreign bridge bank;
  - (9) A bridge institution established for the purpose of resolving a financial institution;
  - (10) A Federal Reserve Bank or a foreign central bank; or
  - (11) **The Bank for International Settlements.**

## Notes

### Amendments

[Reg. EE, 59 FR 4784, Feb. 2, 1994, as amended at 61 FR 1274, Jan. 19, 1996; 86 FR 11622, Feb. 26, 2021]

### Authority

Authority: 12 U.S.C. 4402(1)(B) and 4402(9).

### Source

Source: Reg. EE, 59 FR 4784, Feb. 2, 1994, unless otherwise noted.

### Amendments

[Reg. EE, 59 FR 4784, Feb. 2, 1994, as amended at 61 FR 1274, Jan. 19, 1996; 86 FR 11622, Feb. 26, 2021]