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CFTC to Provide Guidance on Large Trader Reporting of Physical Commodities




by:
Brian C. Harms
Troutman Sanders LLP - Atlanta Office

John J. Leonti
Troutman Sanders LLP - Irvine Office

 
September 5, 2011

Previously published on August 29, 2011

As part of the CFTC’s implementation of the swaps reporting rules, the CFTC is developing guidance for large trader reporting for physical commodities. The guidance will set forth detailed descriptions of not only the reporting requirements, but the reporting format, file layout and delivery mechanism for the electronic position reports, which must be submitted as part of the new swaps reporting rules.

The guidance should assist clearing organizations and members directly and indirectly involved with swap clearing for physical commodity swaps. 

Specifically, the guidance will (i) specify the standard data format that must be used when submitting reports (xml-based format like FpML) and the file layout , (ii) specify and provide data element descriptions, (iii) provide details on how files will be transmitted via secure FTP to the CFTC and (iv) include instructions on establishing a secure FTP account with the CFTC.

The CFTC’s final rules regarding large swaps trader reporting requirements were published in the Federal Register on July 22, 2011, as Regulation 20. Regulation 20 permits modified compliance with the reporting rules for six months following the September 20, 2011, effective date.

Although Regulation 20 is not yet effective, entities that may want to report should begin establishing the necessary internal policies and procedures to ensure regulatory compliance.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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