CFTC Re-Issues Frequently Asked Questions on Commodity Options

The CFTC Division of Market Oversight ("DMO") reissued the FAQs on commodity options in an effort to address questions it has received regarding the Trade Option Form ("Form TO") filing process and the circumstances which trigger the filing requirement.

The FAQ covers matters such as: (i) whether commodity options are "swaps" (generally yes), (ii) which commodity options qualify for the trade option exemption, (iii) what the regulatory requirements are that apply to trade options, and (iv) information as to completing Form TO.

The CFTC noted certain trade option participants are required to file a completed Form TO covering their unreported trade options from calendar year 2013 by March 1, 2014. The FAQs re-issued by the CFTC include hyperlinks to other related, background documents that will help with form completion.

The FAQ was originally issued by DMO in September 2013. (One improvement that the CFTC should make as its FAQs is to date the questions and answers, as the SEC does, so that readers would know which answers are new.)

See: Commodity Options FAQ; Form TO.