2015-13347
Federal Register, Volume 80 Issue 105 (Tuesday, June 2, 2015)
[Federal Register Volume 80, Number 105 (Tuesday, June 2, 2015)]
[Proposed Rules]
[Pages 31326-31327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13347]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 32
RIN 3038-AE26
Trade Options
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed rulemaking; extension of comment period.
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SUMMARY: On May 7, 2015, the Commodity Futures Trading Commission
(``Commission'' or ``CFTC'') published in the Federal Register a notice
of proposed rulemaking (the ``Trade Options
[[Page 31327]]
Proposal'') to amend the limited trade option exemption in part 32 of
its regulations. The Commission is extending the comment period for the
Trade Options Proposal in light of the Commission's recent
interpretation concerning forward contracts with embedded volumetric
optionality.
DATES: The comment period for the Trade Options Proposal published on
May 7, 2015, at 80 FR 26200, is extended until June 22, 2015.
ADDRESSES: You may submit comments, identified by RIN 3038-AE26, by any
one of the following methods:
CFTC Web site: http://comments.cftc.gov. Follow the
instructions for submitting comments through the Comments Online
process on the Web site.
Mail: Send to Christopher Kirkpatrick, Secretary of the
Commission, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW., Washington, DC 20581.
Hand Delivery/Courier: Same as Mail, above.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Please submit your comments using only one of these methods.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
www.cftc.gov. You should submit only information that you wish to make
available publicly. If you wish the Commission to consider information
that may be exempt from disclosure under the Freedom of Information
Act, a petition for confidential treatment of the exempt information
may be submitted according to the procedures established in Sec. 145.9
of the CFTC's regulations, 17 CFR 145.9.
The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse, or remove any or all of a
submission from www.cftc.gov that it may deem to be inappropriate for
publication, such as obscene language. All submissions that have been
redacted or removed that contain comments on the merits of the
rulemaking will be retained in the public comment file and will be
considered as required under the Administrative Procedure Act and other
applicable laws, and may be accessible under the Freedom of Information
Act.
FOR FURTHER INFORMATION CONTACT: David N. Pepper, Special Counsel,
Division of Market Oversight, at (202) 418-5565 or [email protected]; or
Elise Pallais, Counsel, Office of the General Counsel, at (202) 418-
5577 or [email protected]; Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.
SUPPLEMENTARY INFORMATION: On May 7, 2015, the Commission published a
proposal to amend the trade option exemption in part 32 of its
regulations in the following subject areas: (1) Reporting requirements
for trade option counterparties that are not swap dealers or major swap
participants; (2) recordkeeping requirements for trade option
counterparties that are not swap dealers or major swap participants;
and (3) certain non-substantive amendments.\1\ Generally, these
proposed amendments are intended to facilitate use of trade options by
commercial market participants to hedge against commercial and physical
risks.
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\1\ Trade Options, Notice of Proposed Rulemaking, 80 FR 26200
(May 7, 2015).
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On May 18, 2015, the Commission published its final interpretation
regarding forward contracts with embedded volumetric optionality.\2\
The interpretation identifies when an agreement, contract, or
transaction would fall within the forward contract exclusions from the
``swap'' and ``future delivery'' definitions in the Commodity Exchange
Act (``CEA''), notwithstanding that it allows for variations in the
delivery amount (i.e., contains ``embedded volumetric optionality'').
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\2\ Forward Contracts with Embedded Volumetric Optionality, 80
FR 28239 (May 18, 2015). In accordance with section 712(d)(4) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, the
interpretation was issued jointly with the U.S. Securities and
Exchange Commission after consultation with the Board of Governors
of the Federal Reserve System. Although the interpretation was
issued jointly, it is an interpretation solely of the CFTC and does
not apply to the exclusion from the swap and security-based swap
definitions for security forwards or to the distinction between
security forwards and security futures products.
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In light of the recent publication of the Commission's
interpretation on forward contracts with embedded volumetric
optionality, the Commission is extending the comment period for the
Trade Options Proposal until June 22, 2015.
Issued in Washington, DC, on May 28, 2015, by the Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Trade Options Extension of Comment Period--Commission
Voting Summary
On this matter, Chairman Massad and Commissioners Wetjen, Bowen,
and Giancarlo voted in the affirmative. No Commissioner voted in the
negative.
[FR Doc. 2015-13347 Filed 6-1-15; 8:45 am]
BILLING CODE 6351-01-P