Banks’ Overseas Swaps Moves Said to Draw CFTC Attention
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The main U.S. derivatives regulator has begun monitoring the latest effort by Wall Street banks to avoid U.S. swap-trading restrictions by restructuring their overseas trading divisions, an official at the agency said.
The Commodity Futures Trading Commission is watching steps that U.S. banks have taken in recent months that allow them to trade swaps with each other and with foreign-based banks outside of Dodd-Frank Act rules, said the person, who spoke on condition of anonymity because the matter isn’t public.