CFTC Proposes Four Rules to Establish Swaps Reporting, Define Ag Commodities

The Commodity Futures Trading Commission proposed four rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act Oct. 19 that for the first time would define agriculture commodities, establish a regime for reporting positions in physical commodity swaps, and expand consumer privacy protections.

All of the proposals were approved unanimously.

The first proposal dealt with the Dodd-Frank requirement that the commission issue rules establishing speculative position limits for contracts involving an “agricultural commodity.” The Commodity Exchange Act, however, does not formally define the term, and neither has the commission, thus the proposed definition.

Under the proposal, the definition would ...