12 CFR 347.112 – Restrictions applicable to foreign organizations that act as futures commission merchants
Current as of: 2024 | Check for updates
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(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:
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]