Commodity Options; Final Rule and Interim Final Rule (CFTC)

See: 77 FR 25320

The CFTC is adopting a final and interim final rule for commodity options. The final rule and interim final rule apply to commodity options that are subject to the definition of "swap" as it will be further defined by the CFTC and SEC. Exchange-traded options on futures are specifically excluded from the swap definition and will not be affected by this rule. The final rule will generally authorize commodity options to transact subject the same laws and rules applicable to all other swaps. The interim final rule will provide a trade option exemption for certain physically delivered commodity options used by commercial market participants in connection with their commercial activity.

Effective Date : The effective date for this final rule and the interim final rule at § 32.3 is June 26, 2012.

Comment Date: Comments on the interim final rule must be received on or before June 26, 2012.

Cross References: Dodd-Frank Sections 721, 722, and 733; CFTC Rule 3.13; CFTC Rules Parts 32 and 33.

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie; Robert Zwirb.