Gensler Warns on Rule Exemptions

If regulators give foreign branches leeway on Dodd-Frank rules, financial firms would send jobs overseas, CFTC chairman says.

New York financial firms would move jobs overseas if the U.S. grants the industry’s request to exempt companies’ foreign branches from some Dodd-Frank Act rules, said Gary Gensler, chairman of the Commodity Futures Trading Commission.

“If we accept their approach -- that they say, ‘No, don’t cover their London branches’ -- the jobs will go overseas, but the risk will be back here,” Gensler said today in an interview on Bloomberg Television.

Overseas Compliance

Overseas swap dealers would still be required to register with the CFTC and report trades to swap data repositories, Gensler said. The CFTC is seeking to have a system for allowing compliance with overseas regulations substitute for Dodd-Frank rules.

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