CFTC Publishes Final Interpretation of Forward Contracts with Embedded Volumetric Optionality

The CFTC added additional clarification in its final interpretation of forward contracts with embedded volumetric optionality. The final interpretation was published in the Federal Register.

After reviewing the comments that it received regarding its proposed interpretation, which was released in November 2014, the CFTC issued a final interpretation with additional clarifications concerning when an agreement, contract or transaction falls within the forward exclusion from the swap and future delivery definitions, notwithstanding that it contains embedded volumetric optionality.

The interpretation became effective on May 18, 2015.

See: 80 FR 28239.Related news: CFTC Releases Final Interpretation of Forward Contracts with Embedded Volumetric Optionality (with Lofchie Comment) (May 12, 2015).