Answer: Some of you may be wondering if your bank will be regulated in the U.S. as a swap dealer. The Dodd-Frank Act says that if an entity’s swap activities have “a direct and significant connection with the activities in, or effect on, commerce in the United States,” then the CFTC has jurisdiction. The statute also gives the Commission broad authority to “prevent the evasion of any provision” of the Dodd-Frank Act. So in essence, if your bank is doing business here in the U.S., offering swaps to U.S. counterparties, you may want to take a close look at the statute.

CFTC Commissioner Gary Gensler
October 21st
Remarks Before the Institute of International Bankers