Summary: |
The FDIC is issuing a Notice of Proposed Rulemaking (NPR) that would impose requirements on insured depository institutions (IDIs) supervised by the FDIC that engage in certain retail foreign currency transactions with retail customers. The NPR is being issued pursuant to section 742(c)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The FDIC requests public comment on the NPR generally, including regarding whether the proposal contains all appropriate consumer protections. Comments will be solicited on this NPR for 30 days after publication in the Federal Register . Statement of Applicability to Institutions with Total Assets under $1 Billion: The FDIC believes no FDIC-supervised banks in this size category are affected by the proposed rule; since the proposal does not cover traditional spot and forward contracts, only institutions planning to engage in foreign currency futures, options, or rolling spot contracts would be affected. |
Highlights:
The proposed rule would apply to foreign currency futures, options on futures, and options as these terms are used in the Commodity Exchange Act. The rule would also apply to transactions that are "functionally or economically similar" to futures and options, such as "rolling spot" trades. Under the proposed rule:
Distribution:
Suggested Routing: Chief Executive Officer Chief Financial Officer Chief Risk Officer Chief Compliance Officer
Note:
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