Federal Reserve Governor Daniel K. Tarullo gave a speech discussing what he termed a "practical and reasonable way forward" in the U.S. regulation of foreign banking organizations. In Governor Tarullo's speech, delivered at the Yale School of Management, he noted that the profile of foreign bank operations in the United States changed significantly in the run-up to the financial crisis (see also attached study), shifting from a "lending branch" model to a "funding branch" model, in which U.S. branches of foreign banks began borrowing large amounts of U.S. dollars "to upstream to their parents

The Federal Reserve Bank of New York (FRBNY) Executive Vice President Simon Potter delivered a speech on the role of central bank interactions with financial markets, focusing on the operational and market monitoring responsibilities of the New York Fed Markets Group and how these responsibilities have evolved since the onset of the financial crisis. Potter then discussed his role as a research economist trying to make sense of the crisis through the prism of economic theory. He concludes by stating that economic and finance education may need to be supplemented, in that analytic rigor of the

The CFTC has withdrawn parts of its "Frequently Asked Questions on Reporting of Cleared Swaps," which are now under consideration by the CFTC as part of its review of a request from the Chicago Mercantile Exchange for approval of CME Rule 1001 ("Regulatory Reporting of Swap Data"). Specifically, the staff withdrew the following questions, and their corresponding answers: "Which party has the authority to select the particular SDR for purposes of cleared swap reporting?" "May a DCM, SEF or DCO that is also registered as an SDR or legally affiliated with an SDR require counterparties to use

The CFTC Division of Clearing and Risk (DCR) announced the issuance of two time-limited, no-action letters granting relief from required clearing under Section 2(h)(1)(A) of the Commodity Exchange Act and the Commission’s newly adopted Part 50 regulations for certain swaps entered into by either qualifying affiliated counterparties or qualifying cooperatives. Affiliate Letter: The no-action letter provides that DCR will not recommend an enforcement action for failure to clear a swap entered into by affiliated counterparties if one of the counterparties to the swap is majority owned by the

FINRA and the Japan Securities Dealers Association (JSDA) have entered into a Memorandum of Understanding (MOU) to support more robust cooperation between the two regulators. View Press Release in full here (links externally to FINRA website).