Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Friday, May 3, 2013

ABA Asks Congress to Clarify Law on Non-Deliverable Forwards

ABA, its ABA Securities Association subsidiary, and other trade groups asked Congress to clarify that non-deliverable forwards should be subject to the same regulation as other foreign exchange forwards.

In a letter to the Senate Agriculture Committee, which oversees commodity trading regulation, the groups explained that an unintentional oversight in the language of the Dodd-Frank Act resulted in NDFs being regulated more heavily than similar forwards.

An NDF is a type of foreign exchange forward contract that is settled in a single currency (usually U.S. dollars) due to difficulties in moving another currency outside the home country of one of the parties. Under Dodd-Frank, the Treasury Department exempted most foreign exchange forwards from regulation as swaps, but not NDFs; the groups said that “this result was unintended by Congress.”

Read the letter.

No comments:

Post a Comment

Please read our comment policy before making a comment.