### Question
How is the term substantial counterparty exposure that could have serious adverse effects on the financial stability of the United States banking system or financial markets defined?


### Answer
The term **substantial counterparty exposure that could have serious adverse effects on the financial stability of the United States banking system or financial markets** is defined in *17 CFR § 1.3* as the following:

> a swap position that satisfies either of the following thresholds:

(i) $5 billion in daily average aggregate uncollateralized outward exposure; 

#### Citation:
  - *17 CFR § 1.3*
  - Heading: **PART 1—GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT**

