swap dealer

A swap dealer is a financial institution or large entity that facilitates and trades swaps—agreements to exchange cash flows or other financial instruments over time. They act as intermediaries, creating these contracts to help clients manage risks, hedge positions, or speculate on market movements. Swap dealers often hold substantial market influence, and they must follow regulatory requirements due to their systemic importance. Essentially, they provide liquidity and transparency to derivative markets, helping participants manage financial risks more effectively.