OTC MARKET NEWS Powered By Quantifi

Banks Said Poised to Win Delay of U.S. Curbs on Overseas Swaps 

August 11, 2015

Silla Brush, Bloomberg Business

Wall Street banks are close to winning a further delay of a U.S. policy that clamps down on their overseas derivatives trades, according to two people with knowledge of the matter.

The Commodity Futures Trading Commission is probably going to postpone subjecting transactions set up in the U.S., but held in overseas divisions, to Dodd-Frank Act trading regulations, said the people, who asked not to be named because the deliberations are private. The regulator is weighing how long the delay should be, the people said.

Former CFTC Chairman Gary Gensler first outlined the increased oversight in 2013 following concerns that Wall Street was booking swaps overseas to dodge rules meant to bolster competition and increase transparency. Since then, the largest banks have fought to prevent the policy from taking effect.

Industry lobbying groups representing JPMorgan Chase & Co., Goldman Sachs Group Inc. and other firms unsuccessfully sued the agency to overturn additional regulation for cross-border trades, arguing that the CFTC was overstepping its authority.

Read more: Bloomberg Business

Comments are closed on this post.


Submit your email to receive our newsletter