Bloomberg reports that at least two members of staff have been staying until after 9 p.m. because some clients are no longer allowed to deal with Citigroup colleagues in New York, Alex Jackson, head of European investor sales, foreign exchange and local markets, said in a phone interview on 25th October.
That’s because the Dodd-Frank Act prevents people in the U.S. from trading with counterparts who haven’t agreed to International Swaps & Derivatives Association rules, Jackson said. European money managers and Brazilian hedge funds are among customers relying on the arrangements, he said.
'No non-compliant investor or client is able to trade with a U.S.-based salesperson or trader physically located in the U.S.'. Jackson said, citing a footnote to the regulations on swaps trading. 'Any client who has not signed the ISDA protocol falls under this'.
Citigroup, the second-biggest currency trader, is among banks around the world that are adapting to regulatory initiatives introduced to curb financial-market risks following the 2008 credit crisis and subsequent recession.
Of the dozens of derivatives rules being completed, the most contentious have involved how to oversee swaps traded across borders. Deutsche Bank is the largest currency dealer, according to Euromoney Institutional Investor Plc.
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image: © John Mitchell