; (ii) in clause (iii), by striking Such definition and inserting The term ; and (iii) by adding at the end the following: (iv) De minimis exclusion (I) Amounts A person described in subclause (III), and not subclause (I) or (II), of clause (i) shall not be considered a financial entity for purposes of this subsection if the total swaps activity of the person, when calculated with those of all other affiliated persons who are so described, amount to less than— (aa) $1,000,000,000 in gross notional swaps transactions calculated on the basis of a rolling 12-month period; or (bb) an alternative de minimis amount of swaps activity, exposure, transactions, or other measurement, as determined by the Commission. At least every 5 years, the Commission shall consider modifying the alternative de minimis amount due to inflation or other market factors. (II) Calculation The calculation under subclause (I) shall not include— (aa) swaps used to hedge or mitigate risk associated with an asset owned or liability incurred or reasonably likely to be owned or incurred by an entity in the conduct of such entity’s business; or (bb) swaps used by an insurance company for asset replication if they are expressly permitted by State insurance regulators to be entered into in conjunction with other investments in order to replicate the investment characteristics of otherwise permissible investments. (III) Requirements of entities relying on the de minimis exclusion An entity that relies on the de minimis exception in this clause to avoid clearing swaps transactions that the Commission requires a financial entity to clear pursuant to paragraph (1)(A) and Commission regulations shall, with respect to the swaps, report or cause to be reported, to a registered swap data repository the reliance of the entity on the de minimis exclusion.