CFTC to Close Dodd-Frank Swaps "De-Guaranty" Loophole | Practical Law
CFTC Chairman Timothy Massad announced a plan to require the non-US affiliates of US banks to comply with CFTC rules for uncleared swaps, even where the non-US affiliate enters into the swap with a non-US counterparty. This would close a loophole under which parties avoid the application of Dodd-Frank swaps rules to non-US swaps by removing guaranties of those swaps by a US parent or affiliate.