Requesting Interpretive Guidance Relating to Certain Foreign Exchange Transactions


The Asset Management Group of SIFMA (SIFMA AMG) provides comments to the Commodity Futures Trading Commission (CFTC) requesting interpretive guidance with respect to the status of certain types of foreign exchange (FX) transactions as bona fide spot foreign exchange transactions. The CFTC, in the adopting release for its rules further defining the term “swap” set forth a distinction between FX spot transactions and FX forwards, including providing guidance as to “securities conversion transactions,” which are entered into in connection with a related foreign securities transaction.

SIFMA AMG is seeking clarification that FX transactions, which conform to certain parameters, would be treated as bona fide FX spot transactions for purposes of compliance with the CFTC’s rules.