Financial Institution Letter

Retail Foreign Exchange Transactions FIL-55-2011

July 8, 2011




Summary: The FDIC is issuing a final rule that imposes requirements on insured depository institutions (IDIs) supervised by the FDIC that engage in certain retail foreign currency transactions with retail customers. The rule is being issued pursuant to section 742(c)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and will take effect July 15, 2011.

Statement of Applicability to Institutions with Total Assets under $ 1 Billion: The FDIC believes no FDIC-supervised banks in this size category are affected by the final rule. The rule does not cover traditional spot and forward contracts; therefore, only institutions planning to engage in foreign currency futures, options, or rolling spot contracts would be affected.


Distribution:

FDIC-Supervised Banks (Commercial and Savings)

Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2011/fil11055.html

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