Summary: |
The FDIC is issuing a final rule
that imposes requirements on insured depository institutions (IDIs) supervised by
the FDIC that engage in certain retail foreign currency transactions with retail
customers. The rule is being issued pursuant to section 742(c)(2) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, and will take effect July 15, 2011.
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 final rule. The rule does not cover traditional spot and forward contracts; therefore, only institutions planning to engage in foreign currency futures, options, or rolling spot contracts would be affected. |
Highlights:
The final rule applies 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 rule:
Distribution:
Suggested
Routing:
Note:
|