CFTC Proposed Rule: Position Reports for Physical Commodity Swaps

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Gavel.png FINAL RULE: The final rulemaking on this proposal is titled Large Trader Reporting for Physical Commodity Swaps and can be found here.
Timeline, Position Reports for Physical Commodity Swaps
Final Rule Effective Date No-action Relief Deadline
July 22, 2011 September 20, 2011 June 30, 2013

At the CFTC's October 19, 2010 Open Meeting, the second series of proposed rules under the Dodd-Frank Act, the commission approved a rule proposal regarding physical commodity swaps. The goal of this proposal is to establish a framework for a reporting system to collect necessary data on economically equivalent swaps in order for the commission to be able to enforce aggregate position limits. The proposed system would be similar to the current reporting structure for receiving data on large positions in physical commodity futures contracts traded on designated contract markets (DCMs). When the Dodd-Frank regulations are fully implemented, swap data repositories (SDRs) will be created for the purpose of aggregating and storing positional data.

This proposal establishes a "transitional tool" for swap data until such time as SDRs are fully functional, at which point the commission may either continue or discontinue the proposed system. Other features of the proposal:

  • Reportable positions under the proposed system are defined as positions in any one futures equivalent month, comprised of fifty or more economically equivalent swaps (on a futures equivalent basis) based on the same commodity underlying any of the DCM contracts listed in the proposed regulations.
  • Clearing organizations will be required to collect and report on a daily basis the aggregate proprietary and aggregate customer accounts of each of their clearing members their own proprietary positions, and counterparty positions
  • Clearing organizations, clearing members, and swap dealers will be required to keep records of transactions in economically equivalent swaps, and related positions.
  • Clearing members and swap dealers must identify to the commission the direct owner or controller of the reportable account.
  • Each person with a position that is reportable under the proposed regulations to submit, upon a special call by the Commission, a 40S filing with the Commission providing information on the reportable positions.


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