However, to participate in an efsefr or an eoo, the parties must be eligible contract participants as that term is defined in section 1a18 of the commodity exchange act and comply with any other cftc requirements regarding eligibility to transact. Code sections, we have provided a chart, which lists the sections of the cea and their corresponding sections in the united states code. As a result of the doddfrank act, only ecps will be able to enter into over the counter otc swaps. The commodity exchange act outlines the qualifications for ecp eligibility in section 1a18 of the cea.
Eligible contract participantslike financial institutions, insurance companies, and. The commodity futures trading commission commission or cftc is issuing this interpretation of the term actual delivery as set forth in section 2c2diiiiiaa of the commodity exchange act cea pursuant to section 742a of the doddfrank wall. Text of final volcker rule office of the comptroller of the. Commodity trading advisor has the meaning given that term in section 1a6 of the commodity exchange act 7 u. Futures commission merchant has the meaning given that term in section 1a20 of the commodity exchange act 7 u. Whether petitioners were commodity trading advisors under section 1a5 of the commodity exchange act, 7 u. The term alternative trading system means an organization, association, or group of persons that. Each of dealer and counterparty agrees and represents that it is an eligible contract participant as defined in section 1a18 of the u. The commissions regulations are found in chapter 17 of the code of federal regulations, 17 cfr part 1. A practical guide to the eligible contract participant ecp. The commodity exchange act outlines the qualifications for ecp eligibility in section 1a 18 of the cea.
However, to participate in an efsefr or an eoo, the parties must be eligible contract participants as that term is defined in section 1a 18 of the commodity exchange act and comply with any other cftc requirements regarding eligibility to transact. Eligible contract participant or retail certification of. Except as otherwise specifically provided in this act enacting this section and section 12e of this title, amending sections 2, 2a, 4, 4a, 6 to 6c, 6e to 6g, 6j, 6p, 7 to 9a, 10a, 12, 12a, 12c, to c, 15, 16, 18, 19, 21, and 25 of this title, repealing section 26 of this title, enacting provisions set out as notes under sections 1a, 4a. Associated person means, with respect to a swap dealer, any person acting for or on behalf of such swap dealer, including an associated person as defined in section 1a4 of the commodity exchange act. The exchange does not set any specific qualifications for participation in efp transactions. Requirements of secretary of the treasury regarding exemption of foreign exchange swaps and foreign exchange forwards from definition of the term swap 2.
The cea establishes the statutory framework under which the cftc operates. Federal register in the matter of the new york mercantile. The commodity exchange act cea regulates the trading of commodity futures in the united states. Passed in 1936, it has been amended several times since then.
Morgan lewis explains cftcsec jurisdictional battle heats up. The following is a revised version of the commodity exchange. Securities exchange act of 1934 new york stock exchange. Commodity exchange act, as amended the cea, the agreement and this transaction are subject to individual negotiation by the parties and have not been executed or traded on a trading facility as defined in section. Section 712d1 of the doddfrank act provides that the cftc and the sec, in. Eligible contract participant or retail certification of status. A commodity exchange is a market in which multiple buyers and sellers trade commodity linked contracts on the basis of rules and procedures laid down by the exchange. Retail commodity transactions under commodity exchange act.
Ecp as defined in section 1a18 of the act, including any risks created by the forex dealer members affiliates and other ecps acting as dealers. The following is a revised version of the commodity. See sections 721 and 761 new commodity exchange action section 1a 47 and new securities exchange act section 3a68d, respectively. An entity that is classified by the commodity exchange act cea based on its regulated status or amount of assets. A borrower must be an eligible contract participant, as defined in section 1a18 of the commodity exchange act cea, in order to use an interest rate swap to hedge interest rate risk. Attachment a text of the final common rules all agencies. The commission has authority under section 6c1 of the act and regulation 180.
Doddfrank act, section 716 and commodity exchange act. No forex dealer member shall engage in any forex transaction that is prohibited under the commodity exchange act. Since the cea sections do not always correspond numerically to the u. Covered derivative means i a swap, foreign exchange swap, or foreign exchange forward each as defined in section 1a of the commodity exchange act and rules thereunder, or ii a mixed swap as defined in sections 1a of the commodity exchange act and 3a of the securities exchange act and rules thereunder. Doddfrank act, section 716 and commodity exchange act, section 1a49 sec. The following is a revised version of the commodity exchange act marked to indicate the changes proposed by the. The definition of eligible contract participant ecp is found in section 1a 18 of the cea 7 u. The commodity exchange act cea is codified at 7 usc 1, et seq.
A person who actively participates in the generation. This list of agricultural contracts currently includes nine. Morgan lewis explains cftcsec jurisdictional battle heats. Effective enforcement and the future of derivatives. Request for rulemaking regarding the definition of. These terms are alphabetized and numbered, currently. A swap in which the payout to at least one counterparty is based on the price of a commodity or the level of a commodity index. A practical guide to the eligible contract participant. We interpret this reference to a person entering into swaps with.
No forex dealer member or associate of a forex dealer member engaging in any forex transaction shall. Federal deposit insurance corporation 12 cfr part 349 rin. Sep 15, 2015 the cfma added section 6h to the exchange act which, among other things, 1 makes it unlawful for any person to effect transactions in security futures products that are not listed on a national securities exchange or a national securities association registered under section 15aa of the exchange act. The cftc further clarifies enduser exception to the. Request for rulemaking regarding the definition of eligible. Agricultural contracts refers to the list of commodities contained in the definition of commodity in cea section 1a. Section 2h of the commodity exchange act the cea, as amended by the doddfrank wall street reform and consumer protection act, grants the cftc authority to require that certain categories of swaps be subject to a mandatory clearing requirement. Dealer and intermediary oversight, commodity futures trading commission, 1155 21st street, nw, washington, dc 20581. On december 15, 2017, the commodity futures trading commission cftc or commission released its proposed interpretation of the term actual delivery with respect to virtual currency retail commodity transactions.
Ontario participants may include canadian financial institutions, registered dealers and. Section 1a31 of the commodity exchange act cea and commission regulation 1. Section 1a19 of the cea as renumbered by the doddfrank act provides that the term future delivery does not include any sale of any cash commodity for deferred shipment or delivery. Section 1a14 defines the term exempt commodity to mean a commodity that is not an excluded commodity or an agricultural commodity. The term commission means the commodity futures trading commission established under section. A commodity exchange is a market in which multiple buyers and sellers trade commoditylinked contracts on the basis of rules and procedures laid down by. Commodity exchange act the cea and as further described in part iii below. The cftc further clarifies enduser exception to the mandatory clearing requirement for swaps july 18, 2012 section 2h of the commodity exchange act the cea, as amended by the doddfrank wall street reform and consumer protection act, grants the cftc authority to require that certain. Agricultural commodity means any agricultural commodity, as defined in cftc regulation 1. Introducing broker has the meaning given that term in section 1a23 of the. That this act may be cited as the commodity exchange act sec. This definition is a key component of the new regulatory framework for the swaps markets. The cfma added section 6h to the exchange act which, among other things, 1 makes it unlawful for any person to effect transactions in security futures products that are not listed on a national securities exchange or a national securities association registered under section 15aa of the exchange act.
Whether petitioners made misrepresentations concerning the performance and use of their futurestrading system in connection with any order to make, or the making of, futures contracts, in violation of section 4ba of. May 02, 20 a borrower must be an eligible contract participant, as defined in section 1a18 of the commodity exchange act cea, in order to use an interest rate swap to hedge interest rate risk. Commission regulation under section 4c commodity options or 19 of the act. Text of final volcker rule office of the comptroller of. Commodity futures trading commission 17 cfr parts 1, 3, 4, 5. Interim final rule section 1a of the commodity exchange act cea2 sets forth defined terms referenced throughout the statute. Section 1a defines that term excluded commodity to mean, among other things, an interest rate, exchange rate, currency, credit risk or measure, debt instrument, measure of inflation, or other. B further definition the commission, by rule or regulation, may include within, or exclude from, the term commodity pool any investment trust. Under this act, the cftc has authority to establish regulations that are published in title 17 of the code of. Commodity futures trading commission 17 cfr parts 1, 15, 17. Proposed amendments to the sentencing guidelines january 19, 2012. As a result of the doddfrank act, only ecps will be able to enter into overthecounter otc swaps. Van wart the commodity futures trading commission act of 1974 extensively amended the commodity exchange act.