December 20, 2013
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC or Commission) today approved an Order granting a limited purpose swap dealer (SD) designation to State Street Bank and Trust Company (SSBT) with respect to its activities in foreign exchange products that are swaps (FX Products), marking the second time that a limited-purpose SD designation order has been granted.
“Limited-purpose designations” (also referred to as “limited designations”) involve circumstances in which the Commission, by Order, designates a person as an SD for one type, class or category of swap or activities without the person being considered an SD for other types, classes, categories or activities. The Commission’s authority to grant limited purpose SD designations derives from Section 1a(49)(B) of the Commodity Exchange Act (CEA), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
SSBT is a Massachusetts state chartered bank and a member of the Federal Reserve System and Federal Deposit Insurance Corporation that requested a Limited-Purpose Designation as an SD with respect to its activities in FX Products. SSBT stated in its application to the Commission that it only engages in two kinds of swaps: FX Products and interest rate swaps. SSBT stated that its activities in interest rate swaps are very limited and do not constitute swap dealing activity.
CFTC Division of Swap Dealer and Intermediary Oversight (DSIO) staff members responsible for this were DSIO Director Gary Barnett and Special Counsel Gregory Scopino.
Last Updated: December 20, 2013