OCC Propose Rules Authorizing Banks to Engage in Retail Foreign Exchange Transactions

On April 22, 2011, the Office of the Comptroller of the Currency (the "OCC") proposed rules authorizing national banks, federal branches or agencies of foreign banks, and their operating subsidies to engage in off-exchange transactions in foreign currency with retail customers. As of July 16, 2011, Section 742(c)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), to the extent it amends the Commodity Exchange Act (the "CEA"), bars federally regulated U.S. financial institutions from entering into retail foreign exchange transactions unless permitted by a rule or regulation of a federal regulator agency.

Treasury Proposes to Exempt Foreign Exchange Swaps and Forwards from being Regulated as Swaps under the Commodity Exchange Act

On April 29, 2011, the Department of the Treasury ("Treasury") gave notice of a proposed determination that foreign exchange swaps and foreign exchange forwards should be exempted from the mandatory central clearing and exchange trading requirements of Section 721 of the Dodd-Frank Act to the extent it amends the CEA. The proposed determination would find that foreign exchange swaps and foreign exchange forwards should not be regulated as swaps under the CEA and are not structured to evade the Dodd-Frank Act.

Read the Treasury press release

CFTC Reopens and Extends Comments Periods for Dodd-Frank Act Rulemakings on Swaps

On May 4, 2011, the Commodity Futures Trading Commission (the "CFTC") reopened and extended the comments periods of many of its proposed rules implementing provisions of the Dodd-Frank Act that seek to establish a comprehensive framework for the regulation of swaps. The CFTC is also seeking comment on the order in which it should consider final rulemaking under the Dodd-Frank Act.

Read the CFTC proposed rules

FDIC Report Highlights Review of Foreclosure Practices

On May 4, 2011, the Federal Deposit Insurance Corporation (the "FDIC") released the Special Foreclosure edition of Supervisory Insights. The report highlights the lessons learned from an interagency horizontal review of the 14 largest residential mortgage servicers and outlines best practices to minimize legal and reputational risks.

Read the FDIC press release

SEC Seeks Public Comment on Short Sale Disclosure

On May 4, 2011, the Securities and Exchange Commission (the "SEC") published on its website a request for public comment on the feasibility, benefits, and costs of two short selling disclosure regimes as a part of a study mandated by Section 417 of the Dodd-Frank Act.

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The Changing Landscape of Swap Regulation

Perkins Coie LLP attorneys Pravin Rao and Assad Clark authored an article in the May 2011 issue of The Review of Securities & Commodities Regulations. In the article, "Changing Landscape of Swap Regulation," Pravin and Assad discuss some of the macro issues that created the need for greater swaps regulation, how the Dodd-Frank Act has empowered the SEC and CFTC to regulate the industry, and what that regulation will look like

Read the article

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