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.
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.