Release: 5583-08
For Release: December 15, 2008

CFTC Grants Exemption to ICE Clear U.S., Inc. to Clear Certain Agricultural Swap Contracts

Also Determines Certain ICE Futures U.S., Inc. Floor Members to be Eligible Swap Participants, and Permits Related Customer Positions and Property to be Held in Customer Segregated Accounts

Washington, DC – On Friday, December 12, 2008, the Commodity Futures Trading Commission (CFTC or Commission) issued an Order permitting ICE Clear U.S., Inc. (ICE Clear) to clear certain bilateral over-the-counter (OTC) swap transactions involving coffee, sugar, or cocoa.  This is the first time that the Commission has issued an order permitting the clearing of any type of agricultural swap contracts. 

The Order was issued pursuant to authority set forth in Section 4(c) of the Commodity Exchange Act (CEA).  The Order also permits floor trader and floor broker members of ICE Futures U.S., Inc., who are registered with the Commission, to qualify as Eligible Swap Participants when entering into such OTC coffee, sugar, or cocoa swap transactions for their own accounts.

The Order also permits these cleared swap contracts and supporting property to be held in accounts segregated for the benefit of customers pursuant to Section 4d of the CEA.

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R. David Gary
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Last Updated: December 15, 2008