Dodd-Frank.com

CFTC’s Massad on End-Users

By

CFTC Chair Timothy G. Massad delivered a speech on the importance of providing flexibility in the CFTC’s regulations to accommodate hedging by commercial end-users of derivatives.  Mr. Massad highlighted the following: Last September the CFTC amended its rules so that local, publicly-owned utility companies could continue to effectively hedge their... Read More

Topics: Derivatives, Energy

Others May Seek Swap Reporting Delay Like Southwest

By

Reuters has an interesting article about a no-action letter the CFTC issued to Southwest Airlines to permit a 15 calendar day delay in reporting oil derivative transactions.  Southwest apparently convinced the CFTC that rapid reporting caused markets to move against it, interfering with its ability to hedge.  According to the... Read More

Topics: Derivatives

What Really Happened to the Swap Pushout Rule and Dodd-Frank Sleepers From Cromnibus

By

The swap pushout rule was originally embodied in Section 716 of the Dodd-Frank Act.  Among other things, it prohibited “federal assistance” to any “swaps entity.”  Insured depository institutions were subject to this prohibition, subject to a couple of exceptions.  One exception was for hedging activities of the insured depository institution. ... Read More

Topics: Banking, Derivatives

CFTC Proposes Important Clarification on Forward Contracts with Embedded Volumetric Optionality

By

The CFTC has published an important proposed clarification to its seven element test regarding forward contracts with embedded volumetric optionality (EVO). The proposed interpretation provides that a contract for deferred delivery of a physical commodity (i.e., a forward contract) that contains EVO will fall within the forward contract exclusion, and... Read More

Topics: Derivatives, Energy