The Commodity Futures Trading Commission (CFTC) – JD Supra Need to Know

 For your reference, here’s quick roundup of analysis, commentary, and news about recent developments at the United States Commodity Futures Trading Commission (CFTC). As written by corporate lawyers on JD Supra:

On Swaps:

CFTC Shines Light on Swaps Market with ‘Swaps Report’ – by Shipkevich PLLC

“The data contained in the report is robust, and it remains to be seen whether House Republicans will chide the CFTC for going above its Dodd-Frank mandate. As it stands, the report contains estimates of the notional amount of swaps outstanding in each asset class and each product within an asset class, as well as estimates of the total weekly swap transaction volumes in four asset classes: interest rates, credit, equities, and commodities…” read on>>

(Also see: CME vs. CFTC vs. DTCC: The Future of Swaps Regulation by Shipkevich)

CFTC General Counsel Clarifies Application of “Swap” Definition to Energy Transportation and Storage Contracts – Leonard, Street and Deinard

“The CFTC Office of General Counsel (“OGC”) issued an interpretation today regarding application of the “swap” definition (and forward contract exclusion thereunder) to energy transportation and storage contracts, in response to numerous industry comments. Although the interpretation is not binding on the Commission and did not provide an explicit exception for transportation and storage contracts using a two-part fee structure, the interpretation should provide a significant measure of comfort to industry participants…” read on>>

CFTC Final Interpretative Guidance on Applicability of Indemnification and Confidentiality Obligations under CEA Section 21(d) to Foreign Regulators – White & Case

“New section 2(a)(13)(G) of the Commodities Exchange Act (“CEA”), promulgated pursuant to the Dodd-Frank Act, requires all swaps to be reported to swap data repositories (“SDRs”). Under CEA section 21(c)(7), SDRs are required to make swap transaction data available to certain domestic and foreign regulators under specified circumstances. As a condition of being able to access such data from a SDR, regulators are required by CEA section 21(d) to abide by the confidentiality and indemnification requirements of section 8 of the CEA including to indemnify the SDR and the CFTC for any expenses arising out of litigation…” read on>>

CFTC Grants Temporary No-Action Relief from Certain Recordkeeping Requirements for Swap Dealers and Major Swap Participants – Katten Muchin Rosenman

“The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued temporary no-action relief to swap dealers (SDs) and major swap participants (MSPs) from certain recordkeeping requirements set out in the internal business conduct requirements found in CFTC Rules 23.201, 23.202 and 23.203…” read on>>

On the Recent Presidential Election:

President Barack Obama’s Win Also a Win for the SEC and the CFTC – by Orrick

“Legal scholars and attorneys predict that President Obama’s re-election will allow the SEC and the CFTC to continue their aggressive enforcement campaigns of 2011. President Obama’s re-election is particularly important for the CFTC, which Dodd-Frank awarded new oversight powers. The Romney administration may have eliminated key provisions of the Act, returning the CFTC to the limited role it exercised under President George W. Bush. Under President Obama, the CFTC is likely to continue its expanded watchdog role and receive the funding necessary to do so…” read on>>

Slow Down or Speed Up?: Dodd-Frank, CFTC, SEC After Election – Shipkevich

“Slowed reform will almost certainly recharge claims that both agencies cause confusion, especially over swaps reform, where the CFTC in particular has been the target of critics and international regulators alike. If they agencies take their time issuing rules and guidance, the lag between proposal and implementation will increasingly irk market players and foreign regulators…” read on>>

Additional Commentary:

Why Is CFTC Planning to Appeal Judge’s Ruling in Dodd-Frank Case? – Ifrah Law

“The Commodity Futures Trading Commission (CFTC) is apparently going to appeal a U.S. district judge’s ruling that had overturned its decision to impose limits on the number of contracts that commodity traders can hold…” read on>>

California’s Greenhouse Gas Allowance Auction To Be Held Tomorrow – Allen Matkins

“Section 750 of the Dodd-Frank Act required a working group headed by the CFTC to conduct a study on the oversight of existing and prospective carbon markets to ensure an efficient, secure, and transparent carbon market, including oversight of spot markets and derivative markets. The working group’s conclusion set forth in this report appears to flatly contradict the Board’s assertion…” read on>>

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