Restrictions applicable to foreign organizations that act as futures commission merchants.

§ 347.112 Restrictions applicable to foreign organizations that act as futures commission merchants. (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: (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]