The U.S. Commodity Futures Trading Commission voted to propose guidance for the international reach of Dodd-Frank Act derivatives rules for JPMorgan Chase & Co., Goldman Sachs Group Inc. and other financial institutions, according to two people briefed on the matter.

The guidance approved today after a unanimous vote by the CFTC's five commissioners will determine which overseas units of U.S. banks must comply with rules dictated by the 2010 regulatory overhaul. The vote was conducted through a private process in which commissioners gave their approval on paper.

"During a default or crisis, the risk that builds up offshore inevitably comes crashing back onto U.S. shores," CFTC Chairman Gary Gensler said in a statement. At least $2 billion in credit-derivatives trading losses in London at JPMorgan demonstrate the need for guarding against risks accumulated in overseas operations of U.S. firms, he said.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.