Dealers waiting for answers in CFTC cross-border conundrum
Non-US dealers are unsure how much involvement their US staff can have in trades executed overseas. Plans to relocate salespeople were drawn up some time ago, but shelved, and last year’s extension of a no-action period means the confusion continues
As the end of 2014 approached, one large hedge fund was wrestling with some seemingly odd questions: if one of its portfolio managers was executing an over-the-counter derivatives trade with a European bank, and the bank's London-based trader took a call relating to the transaction while travelling in the US, what regulatory framework would apply?
It was fretting because of a safe harbour that was due to expire at the end of last year. A no-action letter issued in November subsequently extended
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