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Wall Street defends overseas swap trading from US regulation 

July 1, 2014
The Rakyat Post

Responding to warnings from US regulators that banks are finding ways around new curbs on financial risks, Wall Street is mobilizing to defend its latest tactic to keep overseas derivatives beyond the reach of US rules.

The industry’s main lobbying group is prepping a strategy to explain why the new practice — removing guarantees from US banks’ overseas trading — is a lawful response to the 2010 Dodd-Frank Act and not an effort to take advantage of a loophole, according to a two-page memo obtained by Bloomberg News.

The move “allows non-US affiliates to compete on a level playing field with their foreign counterparts,” the Securities Industry and Financial Markets Association said in the unsigned memo.

 
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