OCC denies swaps push-out protection to non-US banks

Foreign banks have until July to push out derivatives activities after OCC guidance repeats Dodd-Frank drafting mistake

Non-US banks that book some of their swaps in US branches still face the prospect of pushing those activities into a separate legal entity by July 16 this year, despite a notice issued yesterday by the Office of the Comptroller of the Currency (OCC) that confirms US banks will be able to request safe harbour for up to three years after that date.

The uneven treatment mirrors a drafting error in Section 716 of the Dodd-Frank Act – better known as the swaps push-out – that provides exemptions only