Commodity Options
The Commodity Futures Trading Commission ("Commission" or "CFTC") issued a final rule to repeal and replace the Commission's current regulations concerning commodity options. The Commission also issued an interim final rule (with a request for additional comment) that incorporates a trade option exemption into the final rules for commodity options (added Sec. 32.3). For a transaction to be within the trade option exemption, the option, the offeror (seller), and the offeree (buyer), as applicable, must satisfy certain eligibility requirements, including that the option, if exercised, be physically settled, that the option seller meet certain eligibility requirements, and that the option buyer be a commercial user of the commodity underlying the option, and certain other regulatory conditions.
10/12/2012 The compliance date for final and interim final rule is October 12, 2012.
For purposes of complying with rules 32.2(a) (permitting commodity options subject to the CEA and CFTC rules, including the swaps rules) and 32.3 (permitting trade options), the compliance date shall be the compliance date associated with any such swaps rules.
For Form TO, "Annual Notice Filing for Counterparties to Unreported Trade Options," the compliance date is March 1, 2014. Form TO, the notice filing requirement that requires annual reports regarding otherwise unreported trade options, is effective with respect to calendar year 2013. Therefore, on March 1, 2014, 60 days after the end of calendar year 2013, the first Forms TO, covering unreported trade options during calendar year 2013, are due. There is no Form TO filing requirement for unreported trade options entered into between the effective date of the commodity options rules and December 31, 2012.