Asian dealers 'disappointed' by CFTC clarification of footnote 513
CFTC makes clear swaps between non-US swap dealers and non-US clients will be caught by Dodd-Frank if they are arranged, negotiated or executed by US personnel
Asian dealers are "disappointed" that last week's clarification from the Commodity Futures Trading Commission (CFTC) closes the door to foreign branches in the US escaping the transaction-level requirements of Dodd-Frank even where swaps are only originated in the US but booked and executed overseas.
When footnote 513 was inserted into cross-border guidance issued by the CFTC in July, it threatened to extend the scope of US regulation over foreign bank branches by stating that a "US branch of a
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