Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 21 - Association's Sources of Borrowed Money and Authorized Investments
Section 20 CSR 1140-21.031 - Forward Commitments, Interest-Rate Futures and Financial Options Transactions
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule authorizes associations to make forward commitments to purchase securities and to engage in interest-rate futures and financial options to reduce an institution's interest-rate risk exposure.
(1) An association may make forward commitments to purchase securities (including mortgage loans) subject to the limitations set forth in applicable federal regulations and the recordkeeping requirements of those regulation.
(2) An association may engage in interest-rate futures transactions to reduce its net interest rate risk exposure subject to the limitations set forth in applicable federal regulations and the recordkeeping requirements of such regulation. Each association engaging in such transactions shall provide written notification to the director at the inception of that activity.
(3) An association may engage in financial options transactions to reduce its net interest rate risk exposure subject to the limitations set forth in applicable federal regulations and the recordkeeping requirements of such regulation. Each association engaging in these transactions shall provide written notification to the director at the inception of that activity.
Copies of all referenced federal regulations are available at a cost established by state law to any interested party at the Division of Finance, Room 630, 301 West High Street, Jefferson City, Missouri or the Office of the Secretary of State at a cost established by state law.
*Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994 and 369.299, RSMo 1971, amended 1994.
