L. No. 111-203, 124 Stat. 1376 (2010).3 See Skadden’s July 9, 2012 client alert for a discussion of significant compliance dates.4 7 U.S.C.§ 1a(47).5See 7 U.S.C.§ 1a(47)(B).6 The CFTC interprets the term “nonfinancial commodity” to mean a commodity that can be physically delivered and that is an “exempt commodity” or an “agricultural commodity,” as those terms are defined in the CEA. 77 Fed. Reg.

Seehttps://www.sec.gov/spotlight/dodd-frank/derivatives.shtml.4 Onions and motion picture box office receipts are the exceptions. 7 U.S.C. §1a(9). There is a history behind these seemingly random exceptions, but among regulatory implications, the import is that futures contracts based on onions or movie box office receipts are prohibited and unlawful.

[8] CFTC, Mission & Responsibilities, https://www.cftc.gov/About/MissionResponsibilities/index.htm.[9]Id.[10] 7 U.S.C. § 1a(9); see supra n.8, CFTC, Mission & Responsibilities; see also CFTC, A CFTC PRIMER ON VIRTUAL CURRENCIES 11 (2017), https://www.cftc.gov/sites/default/files/idc/groups/public/documents/file/labcftc_primercurrencies100417.pdf (“Bitcoin and other virtual currencies are properly defined as commodities”). The CEA defines the term “commodity” to include: “wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions . . . and motion picture box office receipts (or any index, measure, value, or data related to such receipts), and all services, rights, and interests (except motion picture box office receipts, or any index, m

00(d)(1)(i)(B) states that the CFTC intends to adopt rules governing the commodity broker liquidation of a commodity options dealer or leverage transaction merchant at such time as such a person registers with the CFTC in that capacity.32 17 C.F.R. § 1.3 (“futures account” definition), § 30.1(g) (“30.7 account” definition) and § 22.1 (“cleared swaps account” definition).33 7 U.S.C.A. § 1a(9).34 17 C.F.R. § 30.1(e).35 17 C.F.R. § 190.01(x).36 11 U.S.C.A. § 761(16).37 17 C.F.R. § 1.3.38 See In re MF Global Inc., 484 B.R. 18, 57 Bankr. Ct. Dec. (CRR) 82 (S.D. N.Y. 2012); ConocoPhillips Co. v. Giddens (In re MF Global Inc.), 12 Civ. 6014, 2012 U.S. Dist. LEXIS 144601 (S.D.N.Y. Oct. 4, 2012).39 17 C.F.R. § 1.11.

The market has not come to a consensus about the nature of a keepwell or other support that will be sufficient for such purpose, and whether it must provide recourse to the counterparty or just the non-ECP guarantor. It has been argued that all guarantors can meet the ECP requirements if the parent/borrower guarantees the obligations of each non-ECP guarantor under a keepwell agreement using the logic of 7 USC 1a(18)(v)(II) quoted above. While this logic is supported by the CEA, it may be viewed as circular given that this amounts to a borrower’s guarantee of the obligations of its guarantors (whether or not that "borrower guarantee" runs solely to the subsidiary guarantor, or to the counterparty as well).9 Until further clarification, this issue should be reviewed on a case-by-case basis.

ency (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)) that is registered under section 6 or 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78fand 78q–1); An investment company (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3)) or an investment adviser (as defined in section 202(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(11))), if the company or adviser is registered with the Securities and Exchange Commission, has filed an application for registration which has not been denied, under the Investment Company Act of 1940 (15 U.S.C. 80a–1et seq.) or the Investment Adviser Act of 1940 (15 U.S.C. 80b–1et seq.), or is an investment adviser described under section 203(l) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(l)); An insurance company (as defined in section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a–2); A registered entity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)), or a futures commission merchant, introducing broker, commodity pool operator, or commodity trading advisor (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)) that is registered with the Commodity Futures Trading Commission; A public accounting firm registered in accordance with section 102 of the Sarbanes-Oxley Act (15 U.S.C. 7212) or an entity controlling, controlled by, or under common control of such a firm; A public utility that provides telecommunications service, electrical power, natural gas, or water and sewer services, within the United States; A church, charity, nonprofit entity, or other organization that is described in section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code of 1986, that has not been denied tax exempt status, and that has filed the most recently due annual information return with the Internal Revenue Service, if required to file such a return; A financial market utility designated by the Financial Stability Oversight Counci

f the 2021 CFTC SEF Advisory are likely to be:any platform or facility (registered or unregistered) offering a chat function (even one-on-one) that provides an ability to execute swaps would be under enhanced CFTC’s scrutiny;CTAs could be reluctant to transact in OTC markets and introduce customers to bilateral transactions;new SEFs may have to essentially operate as trade confirmation and reporting facilities;forcing CTAs to become SEFs could interfere with their roles as fiduciaries to customers;other entities, such as swap dealers, would be reluctant to use CTA services fearing potential aiding and abetting liability for transacting with a potentially unregistered SEF; andcalling into question other intermediary models, such as riskless principals acting as SDs or entities acting as give-up brokers.The previous version of this paper was first published by the FIA Law & Compliance Division in connection with the FIA webinar on February 23, 2023. Public Law 111-203, H.R. 4173 et seq. 7 U.S.C., 1a et seq. A “swap” is defined in Sec. 1a(47) of the CEA generally to only include non-security swaps. Before the Dodd-Frank amendments in 2010, there existed exempt commercial markets (ECMs), derivatives transaction execution facilities (DTEFs), exempt boards of trade, excluded electronic trading facilities, and a few others in addition to the DCMs. Each of these trading venues afforded great flexibility for market participants who could choose the most suitable form for their business association – ranging from a virtually unregulated and unregistered entity to a fully regulated DCM. After Dodd-Frank, DCMs remained largely unchanged, while all the other forms of trading facilities were rolled into the category of SEF. § 1a(50) of the CEA. § 1a(51). This definition of “trading facility” is critical to the understanding the scope of a SEF because it also provides an exclusion in (B) of the definition that carves out of the scope communication facilities where bilateral swaps are negotiat

Id. ¶ 22 (citing 15 U.S.C. § 78c(a)(68)).3 Securities Act of 1933 (“Securities Act”).4 Eligible contract participants include various categories of persons and monetary thresholds; individuals need at least $5 million, and often $10 million, invested on a discretionary basis to qualify as eligible contract participants. SEC Order ¶ 23 (citing 7 U.S.C. § 1a(18)).5 Id. ¶ 6.

NADEX's binary contracts are considered swaps under the Commodity Exchange Act. (Clickheretoaccess CEA§ 1a(47)(A)(ii), 7 U.S.C. § 1a(47)(A)(ii).)COMEX, CME,andNADEX are all registered with the CFTC as designated contract markets.AdamFlavinand Peter Grady Separately, the CFTC brought and settled two enforcement actions against traders associated with Lansing Trade Group, LLC– a grain merchandising firm – fortheir role in an attempted manipulation of the prices of certain wheat futures and options contracts from March 3 to 11, 2015.

Only institutional clients that qualify as eligible contract participants under applicable law will be eligible to trade through LedgerX and each participant must provide LedgerX with sufficient collateral to cover the maximum potential loss or delivery obligation of a contract prior to a trade being executed.(Click here to access the definition of an eligible contract participant at 7 U.S.C. § 1a(18).) LedgerX anticipates listing options on Bitcoin (click here forspecifications) and day ahead swaps (click here for specifications) beginning in September 2017.