CFTC Scrutinizes Swaps Practice

Regulator seeks further information about Wall Street tactics to avoid U.S. trading rules for overseas derivatives.

Wall Street banks face heightened scrutiny from the Commodity Futures Trading Commission (CFTC) over their latest tactic to escape U.S. trading rules for overseas derivatives.

The regulator sent letters yesterday to JPMorgan Chase & Co., Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc., and Morgan Stanley seeking further information about the practice of removing parent-company guarantees from overseas trades. An agency official, who asked not to be named because the letters aren’t public, confirmed that they were sent to the banks.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.