Dodd-Frank cross-border guidance takes effect

Today the final CFTC cross-border guidance took effect. This requires the clearing of any OTC derivatives transactions with a clearing obligation under Dodd-Frank if entered into with an EU branch of a US bank, while trades entered into with an EU subsidiary of a US bank will not be required to be cleared under Dodd-Frank. The guidance also expands the scope of funds that fall under Dodd-Frank by making majority ownership and principal place of business criteria for being classified as a US person.

Source: http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2013-17467a.pdf

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