Non-US clients shun US bank foreign branches
Non-US customers are refusing to trade with foreign branches of US banks ahead of an October 9 clearing deadline. Uncertainty over whether these entities are ‘bona fide’ foreign branches has added to the problems
Non-US clients are shying away from the foreign branches of US banks, ahead of an October 9 deadline that will effectively require all their customers to meet Dodd-Frank Act clearing obligations.
The requirement was contained within an exemptive order published by the Commodity Futures Trading Commission (CFTC) on July 12, to accompany its final interpretative guidance on the cross-border application of Dodd-Frank.
The cross-border guidance confirmed that foreign branches of US banks that are
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