Discuss the 4.5 rule change

Participants discussed the SEC/CFTC's proposed guidance with respect to loan participations (LPs).  Participants also discussed the distinctions between LPs and loan total return swaps.

Particpants discussed the Swap Dealer Definition and its implication for electric coop financing.

Participants discussed the product definitions proposed rulemaking and in particular the proposed guidance regarding the forward contract exclusion.  Bunge takes the position that a forward contract with an embedded option that meets the Commission's past guidance, but includes optionality with respect to volume of the underlying commodity, should qualify for the forward exclusion.  Bunge also described the forward market for grains for barge shipment on the Mississippi River, and noted that commercial participants in other markets may utilize these forwards for risk management pur

Participants discussed proposed changes to rule 4.5.

The participants discussed various issues related to DCO risk rules, including risk management requirements.

Discussion of swap product classification and identification issues.

Discussion of swap product classification and identification issues.

Participants discussed the proposed product definitions rulemaking, and in particular focused on the exclusion for insurance from the swap definition contained in the proposed rule text and interpretive guidance.  Issues discussed included the structure of the proposed exclusion as rule text and guidance, and the scope of the guidance excluding life insurance and annuities from the swap and security-based swap definitions.