CFTC Interpretation Concerning Retail Commodity Transactions

Commentary by Robert Zwirb, "CFTC Opines on Retail Commodity Transactions," on the CFTC's issuance of an Interpretation of the term "actual delivery" in connection with retail commodity transactions under CEA Section 2(c)(2)(D) ("Retail Commodity Transactions"). In addition to analyzing the CFTC's clarification of the term "actual delivery" in the context of certain transactions conducted with retail participants, the article also discusses the implications of the Interpretation for commodity transactions between eligible contract participants where actual delivery does not take place, and expresses concern that the CFTC could take the view that such contracts are CFTC-regulated swaps rather than spots or forwards.

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The above excerpt is from the most recent issue of Energy Metro Desk, which is published biweekly by Scudder Publishing Group, an energy trade news publishing company based in the Washington, D.C. metropolitan area. Those interested in learning more about the Energy Metro Desk may do so by following the link to www.energymetro.com or emailing [email protected].

Reprinted with permission of the publisher, Scudder Publishing Group, LLC. Copyright 2013.

Related News: CFTC Issues Interpretation Concerning Retail Commodity Transactions (Fed. Reg.) (August 23, 2013).
See also: 78 FR 52426; CFTC Press Release.