US counsel have dismissed talk that the exclusion
of FX swaps from clearing, trading and collateral requirements
will be abused. But the move adds to fears of regulatory
arbitrage between the US and Europe.
The US Treasury used its powers under Dodd-Frank to
propose exempting these instruments from the Act’s
most onerous derivative reforms. The announcement was quickly
followed by claims that other instruments would be restructured
to take advantage of the exemption.
But lawyers say this is not...