Bank Foreign Branches Said to Face Tougher U.S. Swaps Rules
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The main U.S. swaps regulator may determine how much of a bank’s foreign trading activity will be subject to regulation under the Dodd-Frank Act based on whether the firm conducts the trades from branches or affiliates, according to people familiar with the discussions.
Gary Gensler, chairman of the Commodity Futures Trading Commission, may recommend to his fellow commissioners that regulators use the legal distinction between a branch and an affiliate as the basis for applying new derivatives rules to U.S. banks’ overseas trades with foreign customers, said the people, who asked not to be named because the discussions are private.