Are Banks Evading U.S. Trading Rules?

CFTC is investigating to determine whether changes to derivatives contracts and corporate structures are designed to bypass Dodd-Frank.

The Commodity Futures Trading Commission (CFTC) is reviewing U.S. banks’ steps to restructure overseas swap trading as part of an examination of whether the companies might be evading Dodd-Frank Act rules.

The agency’s staff is gathering information about any changes banks have made to derivatives contracts or their corporate structures seeking to free themselves from the law’s restrictions, Mark P. Wetjen, the agency’s acting chairman, told reporters yesterday after a Senate hearing in Washington.

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