In adopting its cross-border guidance for Dodd-Frank swap regulation, the CFTC created a regulatory maze when it conceived interpretations applicable to non-US swap counterparties that benefit from US guarantees or act as “conduits” for US affiliates. The CFTC’s guidance on this subject not only created distinctions that arguably are overly fine, but introduced textual twists and turns and analytic inconsistencies and dead ends that make practical application difficult.
Reprinted from the Futures & Derivatives Law Report. Copyright © 2014 Thomson Reuters. For more information about this publication please visit legalsolutions.thomsonreuters.com