---
kind: "section"
citation: "12 C.F.R. § 347.112"
title: "12"
number: "347.112"
heading: "Restrictions applicable to foreign organizations that act as futures commission merchants."
url: "https://uscodex.org/cfr/12/347.112"
---

# §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)](/cfr/12/347.105.md?p=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)](/cfr/12/347.120.md?p=d).
- (b) [Reserved]

## Notes

### Authority

Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103, 3104, 3105, 3108, 3109; Pub L. No. 111-203, section 939A, 124 Stat. 1376, 1887 (July 21, 2010) (codified 15 U.S.C. 78o-7 note).

### Source

Source: 70 FR 17560, Apr. 6, 2005, unless otherwise noted.