Footnote 513 exceeds CFTC's statutory brief: O'Malia
Failure to define a "significant or direct" threat to the US economy has brought regulatory overreach
The recent clarification of footnote 513 of the Commodity Futures Trading Commission's (CFTC) cross-border rules, which significantly widened the geographical scope of US regulatory oversight, has been criticised by CFTC commissioner Scott O'Malia as being outside of the organisation's statutory brief.
Asian dealers believed that footnote 513, issued by the CFTC in July, meant that swaps for foreign clients arranged by US-based traders or brokers and then booked through those firms' overseas
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