Release: 5515-08
For Release: July 08, 2008

CFTC Seeks Public Comment on Request to Permit Clearing of Certain OTC Agricultural Swaps

Exemptive and Other Relief Sought for OTC Corn Basis Swaps and OTC Calendar Swaps for Corn, Wheat, and Soybeans

Washington, DC – The Commodity Futures Trading Commission (Commission) is requesting public comment on a petition submitted jointly by the Chicago Mercantile Exchange Inc. (CME) and the Board of Trade of the City of Chicago, Inc. (CBOT) in connection with certain over-the-counter (OTC) contracts to be listed for clearing-only on the CBOT and cleared through CME. CME is the derivatives clearing organization for the CBOT.

CME and CBOT are requesting that the Commission issue an order under Section 4(c) of the Commodity Exchange Act (CEA) that would permit qualified participants who enter into OTC corn basis swaps and OTC calendar swaps for corn, wheat, and soybeans to submit those contracts to CME for clearing. CME and CBOT also are requesting that the Commission issue an order under Section 4d of the CEA that would permit CME and clearing member futures commission merchants to commingle customer funds used to margin, secure, or guarantee these contracts with other funds held in segregated accounts.

Comments regarding the exemption requests should be submitted on or before August 21, 2008.

Comments may be submitted electronically to, or by any other means listed in the attached Notice. All comments received will be posted on the Commission’s website.

Media Contacts
Ianthe Zabel

R. David Gary

Last Updated: July 8, 2008