CFTC Proposes Narrowing Wall Street’s Foreign Swaps Loophole

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The top U.S. derivatives regulator took a step toward preventing Wall Street banks from evading the Dodd-Frank Act and shifting some of their trading overseas.

The Commodity Futures Trading Commission voted unanimously Monday to propose a requirement that broadens when banks’ overseas divisions must meet U.S. collateral standards designed to curb risks in the $700 trillion swaps market.