Ag Swap Rule

CMC had submitted comments on the CFTC’s ag swaps proposed rule, and we have also been working on this and other topics with the Commodity Options and Ag Swaps working group. The latest information that CMC has learned just this afternoon via the working group is as follows:

Don Heitman told us today that the Staff plan to separate the ag swap final rule from the commodity option rule.  They are aiming to have the final ag swap rule issued by the Commission at its Aug. 4, 2011 meeting.  It will provide that ag swaps will be regulated like other swaps.  It will be effective either on (after seems more correct) December 31, 2011, or when the final product definition is effective.

The fact that they are separating ag options from swaps suggests that they will be regulated differently, which hopefully is a good development.

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