CFTC eases reporting requirement for commodity end-users
The CFTC’s Division of Market Oversight issued a no-action letter on Feb. 18 that provides end-users with relief from a reporting requirement that applies to trade options that have not been reported to a swap data repository.
Trade options are defined by the CFTC as commodity options that are meant to be physically settled between commercial parties and intended for commercial purposes.
Under the CFTC's current rules, commercial entities are required to submit an annual report with information about their trade options if those options have not been reported to a swap data repository. However, the CFTC proposed a rule last year that would eliminate this reporting requirement. The no-action letter provides relief from this requirement while the CFTC is considering the finalization of this rule. The relief expires on April 1.
