CFTC Final Rule: Agricultural Swaps

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Gavel.png FINAL RULE: On August 4, 2011, the CFTC held an open meeting to discuss three final rulemakings under the Dodd-Frank Act. Among the rules approved at the meeting was a final rule regarding agricultural swaps.[1]
Dodd-Frank Timeline, Agricultural Swaps
Final Rule Issue Effective Date No-action Deadline
August 10, 2011 December 31, 2011 December 31, 2012

The final rule will repeal and replace CEA Part 35, generally permitting the transaction of swaps in an agricultural commodity subject to all rules and regulations applicable to any other swap. Summary of the rule:

  • New Part 35 will permit the transaction of swaps in an agricultural commodity subject to all provisions of the CEA – and any rule, regulation, or order thereunder – applicable to all other swaps.
  • New Part 35 will also explicitly provide that swaps in an agricultural commodity may transact on a swap execution facility (SEF) and/or designated contract market (DCM) to the same extent that any other swap may transact on a SEF and/or DCM.
  • At this time, the Commission is only finalizing the agricultural swaps piece of the proposed rules (repealing and replacing Part 35), and is continuing to review and consider the comments received on the proposed commodity options rules. Any final rules addressing commodity options will be issued at a later date. [2]


Related Documents: Fact Sheet, Q&A, and Federal Register Entry

References

  1. Open Meeting on Three Final Rule Proposals under the Dodd-Frank Act. CFTC. Retrieved on August 4, 2011.
  2. Final Rulemaking Regarding Agricultural Swaps. CFTC. Retrieved on August 4, 2011.

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