CFTC eases trade option rules
On April 30, the Commodity Futures Trading Commission approved for public comment a proposed rulemaking that would reduce certain reporting and recordkeeping requirements for end-users that transact in trade options, a term used by the CFTC to refer to physically settled over-the-counter options on commodities that are purchased by commercial end-users. The proposed rule is the latest example of the CFTC's efforts to “fine-tune” rules put in place to implement the Dodd-Frank Act of 2010. CFTC chairman Tim Massad noted that trade options are commonly used by commercial end-users and said this action should help reduce the cost of regulatory compliance for those participants.
