Dodd-Frank Means Long Days in London

Citigroup currency staff work London evenings to serve clients no longer allowed to deal with colleagues in the U.S.

For the foreign-exchange sales team in Citigroup Inc.’s London office, Dodd-Frank regulations mean extra hours at work.

At least two members of staff have been staying until after 9 p.m. because some clients are no longer allowed to deal with Citigroup colleagues in New York, Alex Jackson, head of European investor sales, foreign exchange and local markets, said in a phone interview on Oct. 25. That’s because the Dodd-Frank Act prevents people in the U.S. from trading with counterparts who haven’t agreed to International Swaps & Derivatives Association rules, Jackson said. European money managers and Brazilian hedge funds are among customers relying on the arrangements, he said.

Working Overtime

Citigroup asked staff in London, who start at around 7 a.m., to work later after calculating that a “material” number of trades were done each day that could have breached the new rules because they were handled by a part of the firm that’s a U.S.-registered swaps dealer, according to Jackson.

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