CFTC casts margin net to catch US banks’ affiliates

Agency redefines ‘guarantee’, but lawyers caution it may not stick

timothy-massad
CFTC chairman Timothy Massad

Foreign affiliates of US banks that dropped parental guarantees to avoid trading requirements of the Dodd-Frank Act would still be caught by new cross-border margin rules proposed on June 29 – one of a series of potentially divisive provisions in the draft rules. Lawyers are already challenging the ability of US regulators to regulate so-called non-guaranteed affiliates.

The Commodity Futures Trading Commission (CFTC) voted unanimously in favour of the rules, which subject non-cleared swaps to

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