New York expands role in disputes over foreign exchange swaps

In Indosuez International Finance B.V. v. National Reserve Bank (2002), the New York Court of Appeals proclaimed New York's paramount interest in the application of its law to foreign currency exchange transactions (fx transactions) involving US dollars, and in so doing expanded the scope of personal and subject matter jurisdiction in New York so as to bring disputes for fx transactions in dollars within the purview of New York courts. The Court of Appeals articulated New York's choice of law principles, requiring a court to apply the law of the state with the most significant relationship with the particular issue in conflict. The court resolved every issue with which it was confronted in a manner apparently designed to afford New York courts the broader latitude to assume jurisdiction over disputes involving dollar transactions and to decide them according to New York law.