Double standards: CFTC margin rules redefine key concepts

When is a US person not a US person? The CFTC has the punchline

risk-1015-margining-illo
Which way now? US banks are worried by the change of direction

Try to keep up. The foreign office of a US bank is subject to Commodity Futures Trading Commission (CFTC) rules on swaps clearing, execution and reporting, unless it is an affiliate that is not guaranteed by the US parent. These non-guaranteed affiliates (NGAs) and, crucially, their non-US clients are in the clear.

If, however, the NGA is not overseen by one of the US prudential supervisors, its financial results are consolidated with those of its US parent and it is executing a trade with a

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