International Swaps Regulation - Comment Letter - Consortium of International Banks - September 20, 2011
Acceptance of Public Submissions for a Study on International Swap Regulation
September 20, 2011
This comment letter was submitted by the following banking institutions:
- Bank of America Merrill Lynch
- Barclays Capital
- BNP Paribas
- Crédit Agricole Corporate and Investment Bank
- Credit Suisse Securities (USA)
- Deutsche Bank AG
- Morgan Stanley
- Nomura Securities International, Inc.
- Société Générale
- UBS Securities LLC
The letter offers the following recommendations regarding international harmonization of rules:
- The agencies should adopt a "consistent definition of 'U.S. person' based on SEC Regulation S" in order to decide whether parties to a swap transaction are subject to Dodd-Frank provisions.
- The agencies should clarify application of swap dealers and major swap participants definitions to non-U.S. activities such as non-U.S. persons dealing with U.S. registered swap dealers, and swaps transactions inter-affiliated entities.
- The agencies should address the fact that many firms "conduct their swap dealing businesses through a variety of structures, based on multiple and in many cases interdependent legal, strategic and business considerations that pre-date Dodd-Frank," and that "transaction-level requirements should generally apply only to transactions with a U.S. person."