Commodity Futures Trading Commission March 24, 2009 – Federal Register Recent Federal Regulation Documents

Order (1) Pursuant to Section 4(c) of the Commodity Exchange Act, Permitting the Chicago Mercantile Exchange to Clear Certain Over-the-Counter Agricultural Swaps and (2) Pursuant to Section 4d of the Commodity Exchange Act, Permitting Customer Positions in Such Cleared-Only Contracts and Associated Funds To Be Commingled With Other Positions and Funds Held in Customer Segregated Accounts
Document Number: E9-6369
Type: Notice
Date: 2009-03-24
Agency: Commodity Futures Trading Commission, Agencies and Commissions
By petition dated April 21, 2008 (Petition), the Chicago Mercantile Exchange Inc. (CME), a registered derivatives clearing organization (DCO), and the Board of Trade of the City of Chicago, Inc. (CBOT), a designated contract market, requested permission to clear certain over-the counter (OTC) swap agreements (swaps) in corn, wheat, and soybeans. Authority for granting this request is found in Section 4(c) of the Commodity Exchange Act (Act).\1\ The Petition also requested permission pursuant to Section 4d of the Act \2\ to allow CME and futures commission merchants (FCMs) clearing through CME to commingle positions in those cleared-only OTC swaps (cleared-only contracts) and funds associated with those positions with positions and funds otherwise required to be held in a customer segregated account. The Commodity Futures Trading Commission (Commission) has reviewed public comments and the entire record in this matter and it has determined to issue an order granting the requested permission, subject to certain terms and conditions.
Concept Release on Whether To Eliminate the Bona Fide Hedge Exemption for Certain Swap Dealers and Create a New Limited Risk Management Exemption From Speculative Position Limits
Document Number: E9-6187
Type: Proposed Rule
Date: 2009-03-24
Agency: Commodity Futures Trading Commission, Agencies and Commissions
In June and July of 2008, the Commodity Futures Trading Commission (''Commission'') issued a special call for information from swap dealers and index traders regarding their over-the-counter (``OTC'') market activities. In September of 2008, the Commission released a ``Staff Report on Commodity Swap Dealers and Index Traders with Commission Recommendations'' (the ``September 2008 Report'') with several preliminary Commission recommendations. Recommendation five of the September 2008 Report directs the staff to develop an advance notice of proposed rulemaking that would review whether to eliminate the bona fide hedge exemption for swap dealers and replace it with a limited risk management exemption that is conditioned upon, among other things, an obligation to report to the CFTC and applicable self- regulatory organizations when certain noncommercial swap clients reach a certain position level and/or a certification that none of a swap dealer's noncommercial swap clients exceed specified position limits in related exchange-regulated commodities.\1\
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