Swaps Qa
Swaps Qa
Swaps Qa
The proposed reports would enable the Commission to meet its statutory responsibility for enforcing aggregate
position limits that cover economically equivalent swaps in the absence of other sources of positional swaps data.
Which commodities are covered by the proposed regulation?
Forty-six specific exempt and agricultural commodities are covered by the proposed regulations.
Exempt commodities broadly include, but are not limited to, gold, silver, copper, platinum, palladium, uranium,
ethanol, wood pulp, steel, crude oil, coal, natural gas, heating oil, and gasoline.
Agricultural commodities broadly include, but are not limited to, corn, oats, rice, soybeans, soybean meal, soybean
oil, wheat, butter, cheese, dry whey, feeder cattle, live cattle, milk, dry milk, lumber, cocoa, coffee, orange juice,
sugar, and cotton.
How many entities will be required to make reports under this regulation?
The Commission estimates that roughly 180 clearing members and swap dealers transact in physical commodity
swaps and would be required to report under the proposed rules. The number of clearing organizations required to
make reports is expected to be approximately five.
The Commission is in the preliminary stages of implementing the technological steps necessary for collecting and
processing swaps position records, but envisions specifying a standard format for the data record which will be
transmitted electronically to the Commission. The collection of swap position data will be similar to the
Commission’s current collection of large trader futures position data.
1. because the floating price of the swap refers to a covered futures contract settlement price; or
2. the swap is priced on the same commodity delivered at the same location, or another location so long as the
other delivery location has similar supply and demand characteristics, as that of a covered contract.
How will the proposed swaps reporting system be different than Swap Data Repositories (SDRs)?
Congress mandated the CFTC consider establishing aggregate positions limits before SDRs will be established.
Therefore, the swaps reporting system would serve as a pioneering yet interim program to collect swap position
data until SDRs are functioning and able to fulfill this need.
In what other ways will the Commission use swap position data?
The proposed swap position reports for physical commodity swaps would be the first systematic survey of the size
and complexity of both the cleared swap as well as the uncleared or “opaque” swaps market. This information has
great value to the Commission for a number of reasons, and aggregate statistics on the size of the swaps market are
also of use to Congress, academia, and the press, as is the case presently with aggregate futures market information
released through the Commitments of Traders reports.