Federal Register, Volume 80 Issue 105 (Tuesday, June 2, 2015)  
[Federal Register Volume 80, Number 105 (Tuesday, June 2, 2015)]
[Proposed Rules]
[Pages 31326-31327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13347]



17 CFR Part 32

RIN 3038-AE26

Trade Options

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed rulemaking; extension of comment period.


SUMMARY: On May 7, 2015, the Commodity Futures Trading Commission 
(``Commission'' or ``CFTC'') published in the Federal Register a notice 
of proposed rulemaking (the ``Trade Options

[[Page 31327]]

Proposal'') to amend the limited trade option exemption in part 32 of 
its regulations. The Commission is extending the comment period for the 
Trade Options Proposal in light of the Commission's recent 
interpretation concerning forward contracts with embedded volumetric 

DATES: The comment period for the Trade Options Proposal published on 
May 7, 2015, at 80 FR 26200, is extended until June 22, 2015.

ADDRESSES: You may submit comments, identified by RIN 3038-AE26, by any 
one of the following methods:
     CFTC Web site: http://comments.cftc.gov. Follow the 
instructions for submitting comments through the Comments Online 
process on the Web site.
     Mail: Send to Christopher Kirkpatrick, Secretary of the 
Commission, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581.
     Hand Delivery/Courier: Same as Mail, above.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    Please submit your comments using only one of these methods.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
www.cftc.gov. You should submit only information that you wish to make 
available publicly. If you wish the Commission to consider information 
that may be exempt from disclosure under the Freedom of Information 
Act, a petition for confidential treatment of the exempt information 
may be submitted according to the procedures established in Sec.  145.9 
of the CFTC's regulations, 17 CFR 145.9.
    The Commission reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse, or remove any or all of a 
submission from www.cftc.gov that it may deem to be inappropriate for 
publication, such as obscene language. All submissions that have been 
redacted or removed that contain comments on the merits of the 
rulemaking will be retained in the public comment file and will be 
considered as required under the Administrative Procedure Act and other 
applicable laws, and may be accessible under the Freedom of Information 

FOR FURTHER INFORMATION CONTACT: David N. Pepper, Special Counsel, 
Division of Market Oversight, at (202) 418-5565 or [email protected]; or 
Elise Pallais, Counsel, Office of the General Counsel, at (202) 418-
5577 or [email protected]; Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On May 7, 2015, the Commission published a 
proposal to amend the trade option exemption in part 32 of its 
regulations in the following subject areas: (1) Reporting requirements 
for trade option counterparties that are not swap dealers or major swap 
participants; (2) recordkeeping requirements for trade option 
counterparties that are not swap dealers or major swap participants; 
and (3) certain non-substantive amendments.\1\ Generally, these 
proposed amendments are intended to facilitate use of trade options by 
commercial market participants to hedge against commercial and physical 

    \1\ Trade Options, Notice of Proposed Rulemaking, 80 FR 26200 
(May 7, 2015).

    On May 18, 2015, the Commission published its final interpretation 
regarding forward contracts with embedded volumetric optionality.\2\ 
The interpretation identifies when an agreement, contract, or 
transaction would fall within the forward contract exclusions from the 
``swap'' and ``future delivery'' definitions in the Commodity Exchange 
Act (``CEA''), notwithstanding that it allows for variations in the 
delivery amount (i.e., contains ``embedded volumetric optionality'').

    \2\ Forward Contracts with Embedded Volumetric Optionality, 80 
FR 28239 (May 18, 2015). In accordance with section 712(d)(4) of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, the 
interpretation was issued jointly with the U.S. Securities and 
Exchange Commission after consultation with the Board of Governors 
of the Federal Reserve System. Although the interpretation was 
issued jointly, it is an interpretation solely of the CFTC and does 
not apply to the exclusion from the swap and security-based swap 
definitions for security forwards or to the distinction between 
security forwards and security futures products.

    In light of the recent publication of the Commission's 
interpretation on forward contracts with embedded volumetric 
optionality, the Commission is extending the comment period for the 
Trade Options Proposal until June 22, 2015.

    Issued in Washington, DC, on May 28, 2015, by the Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Trade Options Extension of Comment Period--Commission 
Voting Summary

    On this matter, Chairman Massad and Commissioners Wetjen, Bowen, 
and Giancarlo voted in the affirmative. No Commissioner voted in the 

[FR Doc. 2015-13347 Filed 6-1-15; 8:45 am]