Gensler States Foreign Banks Subject to CFTC Rules When Dealing With US Counterparties
In remarks before the Institute of International Bankers on October 21, 2010, CFTC Chairman Gary Gensler addressed the question on whether a foreign bank can be regulated in the U.S. as a swap dealer when dealing with US counterparties. According to Mr. Gensler, the answer is “Yes.” Mr. Gensler stated the Dodd-Frank Act provides that if an entity’s swap activities have “a direct and significant connection with the activities in, or effect on, commerce in the United States,” then the CFTC has jurisdiction. According to Mr. Gensler, the statute also gives the CFTC broad authority to “prevent the evasion of any provision” of the Dodd-Frank Act.
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