CFTC Responds to Frequently Asked Questions on Commodity Options (with Lofchie Comment)

The CFTC Division of Market Oversight staff responded to frequently asked questions from market participants and other interested parties regarding commodity options.The responses included:

• general information regarding the regulation of commodity options, including the circumstances in which they are regulated as swaps;
• general information regarding the filing of CFTC Form TO ("Unreported Trade Options"); and
• answers to various technical questions regarding Form TO, trade options reporting, and CFTC No-Action Letter 13-08 (granting no-action relief from certain reporting and recordkeeping provisions of CFTC Rule 32.3(b) ("Trade Options")).

Lofchie Comment:This is a useful plain-English summary of the CFTC's position on a variety of basic questions relating to the treatment of commodity options.

See: CFTC Commodity Options FAQs.