CFTC OGC Issues No-Action Letter Regarding Eligible Contract Participant Issues

The CFTC Office of General Counsel today issued the attached interpretative and no-action letter regarding Eligible Contract Participant (ECP) issues. One prong of the letter deals with the treatment of guarantees under Dodd-Frank in which either the guarantor or the guaranteed party is not an ECP (and provides exemptive relief). The other principal portion of the letter allows the recipient of a loan, including of a loan that has not been fully disbursed and will not be immediately disbursed, to treat the anticipated amount of the loan as part of its current net assets for purposes of determining whether it qualifies as an ECP.

See: CFTC Letter 12-17 1a(18)(A); 2(e); 13(a); 17 C.F.R. § 23.430; No-Action See also: CFTC Press Release.