CFTC Dodd-Frank Rulemaking Final Rule - Agricultural Commodity Definition

76 FR 41048

July 13, 2011

The final rulemaking adopts a definition of the term agricultural commodity, CFTC Rule 1.3(zz), which is necessary for, among other things, the Commission's agricultural swaps rulemaking and the Commission's agricultural commodity speculative position limit rule. The proposed definition includes four categories:

1) The enumerated commodities listed in section 1a of the Act, including such things as wheat, cotton, corn, the soybean complex, livestock, etc.;

2) A general operational definition that covers: "All other commodities that are, or once were, or are derived from, living organisms, including plant, animal and aquatic life, which are generally fungible, within their respective classes, and are used primarily for human food, shelter, animal feed, or natural fiber;"

3) A catch-all category for commodities that would generally be recognized as agricultural in nature, but which don't fit within the general operational definition: "Tobacco, products of horticulture, and such other commodities used or consumed by animals or humans as the Commission may by rule, regulation, or order designate after notice and opportunity for hearing;" and

4) Finally, a provision applicable to: "Commodity-based indexes based wholly or principally on underlying agricultural commodities."

Effective Date: Monday, September 12, 2011

Cross References

Dodd-Frank Act, Title VII , Secs. 723(c)(3) and 733; CEA Secs. 4(c) and 5h(b)(2); 17 CFR Part 1