Wall Street Has Two Months to Meet Overseas Policy

CFTC moves effective date to Jan. 14 for policy requiring Dodd-Frank compliance on swaps trades made by U.S.-based traders on behalf of overseas affiliates.

The top U.S. derivatives regulator gave Wall Street two months to abide by a new policy imposing Dodd-Frank Act rules on banks when they arrange trades domestically and then book them overseas.

The Commodity Futures Trading Commission (CFTC) postponed a Nov. 14 advisory that undermined a legal interpretation Wall Street had found buried in a footnote, number 513, in an earlier agency document. Banks relied on the footnote to keep swap deals off electronic platforms and away from the agency’s rules that were put in place in the wake of the 2008 financial crisis.

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