CFTC Closes Loophole On Cross-Border Swaps Trading

Law360, New York (November 15, 2013, 2:55 PM EST) -- The U.S. Commodity Futures Trading Commission on Thursday cleared up confusion on a potential loophole in its cross-border swaps trading guidelines by saying that trades prepared by U.S. firms for overseas clients should be processed through electronic platforms.

The two-page guidance was a direct answer to an interpretation by Wall Street banks of a footnote in the July guidance on cross-border swaps that the banks said allowed some trades in the $633 trillion derivatives market to remain private. Some banks interpreted footnote number 513 of the...
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