Agricultural Swaps

The Commodity Futures Trading Commission (Commission) finalized rules to implement new statutory provisions enacted by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"). The Dodd-Frank Act provides that swaps in an agricultural commodity (as defined by the Commission) are prohibited unless entered into pursuant to a rule, regulation or order of the Commission adopted pursuant to certain provisions of the Commodity Exchange Act (CEA ). The Commission finalized rules that would, among other things, implement regulations whereby swaps in agricultural commodities may transact subject to the same rules as all other swaps. The rules for swaps in an agricultural commodity repealed and replaced the Commission’s regulations concerning the exemption of swap agreements.