CFTC Issues FAQ on Energy Agreements

[authors: Kevin M. Foley, Adam J. Spector]

The Commodity Futures Trading Commission has responded to questions raised by market participants regarding whether such participants must classify physical commercial agreements for energy supply and consumption as “commodity options.” The FAQ describes in more detail the three-part test (included in the CFTC’s and Securities and Exchange Commission’s release on the definition of “swap” and its counterparts) to be used in making this determination.

More information on the FAQ can be found here.