External Meetings: Meeting with International Institute of Bankers

The meeting discussed how the CFTC’s swap dealer requirements would apply to non-U.S. banks with swap activities that relate to the U.S.~The Institute of International Bankers said non-U.S. banks that enter into swaps with U.S. customers are swap dealers with respect to their U.S.-facing swap activities.  Requirements would apply to these non-U.S. banks as follows:  capital and risk-management requirements should apply entity-wide; for organizational requirements (chief compliance officer, information barriers, etc.), the CFTC should defer to requirements set by the home country regulator, if comparable to U.S. requirements, and a failure to comply with the home country requirements would be deemed a violation of U.S. law; and CFTC requirements that are specific to a particular swap would apply to all swaps with U.S. customers.  The determination of which swaps are with U.S. customers (for example, where a non-U.S. entity is advised by a U.S. investment manager or investment adviser) should be made on a consistent basis.~The meeting also discussed how non-U.S. swap dealers would report information about swaps with U.S. customers to U.S. swap data repositories.