Corporate and Financial Weekly Digest - October 4, 2013


In this issue:

- FINRA Proposes Rule to Require Alternative Trading Systems to Report Volume Information and Use Unique Market Participant Identifiers

- SEC Issues Frequently Asked Questions Regarding Liability of Broker-Dealer Compliance and Legal Personnel

- CFTC Staff Issues No-Action Letters Relating to Swap Execution Facilities

- CFTC Staff Responds to FAQs Regarding Commodity Options

- CFTC Issues Order Relating to the Continuation, Shutdown and Resumption of Operations Following a Lapse in Appropriations

- Excerpt from: CFTC Staff Responds to FAQs Regarding Commodity Options:

On September 30, CFTC staff issued responses to several frequently asked questions (FAQs) related to commodity options. Pursuant to Section 1a(47) of the Commodity Exchange Act, which defines the term “swap” to include an “option of any kind that is for the purchase or sale, or based on the value, of 1 or more . . . commodities,” commodity options are generally regulated as swaps. The CFTC has provided certain exceptions and exemptions for commodity options that are embedded in a forward contract, including volumetric options, and trade options. The FAQs provide the conditions for qualifying for these limited exceptions and includes specific guidance on the trade option exemption.

Please see full newsletter below for more information.

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