(a) If a bank acquires or retains an equity interest in a foreign organization that acts as a futures commission merchant pursuant to § 347.105(b)(16), the foreign organization may not be a member of an exchange or clearing association that requires members to guarantee or otherwise contract to cover losses suffered by other members unless the:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In 12 CFR 347.112

  • Contract: A legal written agreement that becomes binding when signed.

(1) Foreign organization’s liability does not exceed two percent of the bank’s Tier 1 capital, or

(2) Bank has obtained the prior approval of the FDIC under § 347.120(d).

(b) [Reserved]