Limitations on permitted proprietary trading activities.

CFR · 2024-01-01 · US · Title 12

(a) No transaction, class of transactions, or activity may be deemed permissible under §§ 44.4 through 44.6 if the transaction, class of transactions, or activity would: (1) Involve or result in a material conflict of interest between the banking entity and its clients, customers, or counterparties; (2) Result, directly or indirectly, in a material exposure by the banking entity to a high-risk asset or a high-risk trading strategy; or (3) Pose a threat to the safety and soundness of the banking entity or to (b) (2) Prior to effecting the specific transaction or class or type of transactions, or engaging in the specific activity, the banking entity: (i) (B) Such disclosure is made in a manner that provides the client, customer, or counterparty the opportunity to negate, or substantially mitigate, any materially adverse effect on the client, customer, or counterparty created by the conflict of interest; or (ii) (c) (1) (2)

official document · source cfr-2024 · id 12:§ 44.7