WASHINGTON (MNI) – The following was issued by the Federal Reserve
Thursday:
The Federal Reserve Board is seeking comment on a proposal that
sets standards for banking organizations regulated by the Federal
Reserve that engage in certain types of foreign exchange transactions
with retail customers.
The proposal, issued pursuant to the Dodd-Frank Wall Street Reform
and Consumer Protection Act, outlines requirements for disclosure,
recordkeeping, business conduct, and documentation for retail foreign
exchange transactions. Institutions engaging in such transactions will
be required to identify themselves to their regulator and to be well
capitalized. They will also be required to collect margin for retail
foreign exchange transactions.
The types of transactions covered by the rule include off-exchange
futures and options on futures, over-the-counter options on foreign
currency, and so-called rolling spot transactions. The proposal does not
include regular spot transactions, listed options on foreign currency,
and foreign currency forwards and swaps. The proposal would cover
entities regulated by the Federal Reserve including state member banks,
bank and financial holding companies, Edge Act and agreement
corporations, and uninsured state-licensed branches and agencies of
foreign banks.
The Federal Reserve consulted with the Office of the Comptroller of
the Currency and the Federal Deposit Insurance Corporation. The agencies
have engaged in separate rulemakings as specified by Dodd-Frank.
The Federal Reserve requests comments on the proposal, which will
be published soon in the Federal Register, by October 11, 2011.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MK$$$$,M$U$$$,MMUFE$,MGU$$$,MFU$$$]
