CFTC Must Close Global Swaps Loopholes, Reformers Say

Law360, New York (August 28, 2012, 5:40 PM EDT) -- Financial reform advocates said Tuesday that exceptions embedded in a recent U.S. Commodity Futures Trading Commission guidance for cross-border enforcement of Dodd-Frank Act swaps rules left several loopholes that could allow banks to evade rules by simply changing the registration of their subsidiaries.

In a letter, Americans for Financial Reform said that the way the CFTC defines which foreign subsidiaries of U.S. banks are covered under Dodd-Frank-mandated rules for over-the-counter derivatives and the allowance for those units to be governed by foreign derivatives trading rules if...
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