CFTC Approves Limited Purpose Swap Dealer Designations for Cargill and Cargill Affiliate, Subject to Conditions

The CFTC approved an Order granting limited purpose swap dealer ("SD") designations to Cargill, Incorporated, and an affiliate, Cargill Financial Services International, Inc., making this the first time that limited purpose SD designations have been granted.

Limited purpose designations involve circumstances in which the CFTC designates a person as an SD for one type, class, or category of swap or activities without that person's being considered a swap dealer for other types, classes, categories or activities. The CFTC will have regulatory oversight of their SD activities in connection with the Cargill Risk Management Business Unit, where the companies engage in swap dealing. The CFTC's authority to grant limited purpose SD designations derives from the Commodity Exchange Act Section 1a(49)(B) ("Swap Dealer").

The numerous conditions of the designation begin on page 5 and end on page 10.

See: CFTC Press Release; Order of Limited Purpose Designation.