State Street Bank Gets Swap Dealer Designation Under CFTC for FX Swaps
- State Street Bank has been approved under the US regulator to deal in FX and interest rate swaps with limited purpose. Under the Dodd-Frank rulings swaps and other OTC derivatives are to be traded on an exchange.
The US financial watchdog that supervises financial derivatives has approved State Street Bank as a swap dealer. In the notification issued by the regulator, the Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term or Commission), states that State Street Bank is approved as a limited-purpose swap dealer (SD) designation for FX products.
Since the new Dodd-Frank swap rules were put in place under President Obama’s administration, the CFTC has been issuing licenses to firms operating in the OTC sector. The current approval is only the second made by the CFTC which means State Street Bank will be limited to a specific number of products.
Details issued in the Order state: “Limited-purpose designations” (also referred to as “limited designations”) involve cirumstances in which the Commission, by Order, designates a person as an SD for one type, class or category of swap or activities without the person being considered an SD for other types, classes, categories or activities. The Commission’s authority to grant limited purpose SD designations derives from Section 1a(49)(B) of the Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act (CEA), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act.”
State Street Bank joins Cargill Financial Services (Cargill), a commodity trading firm as a swap dealer with limited-purpose. Cargill was approved in October 2013.
The US financial watchdog that supervises financial derivatives has approved State Street Bank as a swap dealer. In the notification issued by the regulator, the Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term or Commission), states that State Street Bank is approved as a limited-purpose swap dealer (SD) designation for FX products.
Since the new Dodd-Frank swap rules were put in place under President Obama’s administration, the CFTC has been issuing licenses to firms operating in the OTC sector. The current approval is only the second made by the CFTC which means State Street Bank will be limited to a specific number of products.
Details issued in the Order state: “Limited-purpose designations” (also referred to as “limited designations”) involve cirumstances in which the Commission, by Order, designates a person as an SD for one type, class or category of swap or activities without the person being considered an SD for other types, classes, categories or activities. The Commission’s authority to grant limited purpose SD designations derives from Section 1a(49)(B) of the Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act (CEA), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act.”
State Street Bank joins Cargill Financial Services (Cargill), a commodity trading firm as a swap dealer with limited-purpose. Cargill was approved in October 2013.