CFTC close to fixing Dodd-Frank commodity option woes
The Commodity Futures Trading Commission is said to be exploring solutions for the so-called 'seventh prong' problem created by its definition of a swap under the Dodd-Frank Act
The US Commodity Futures Trading Commission (CFTC) and its new chairman, Timothy Massad, are said to be moving closer to resolving an ambiguity in the agency's Dodd-Frank Act regulations that is causing major headaches for energy companies.
The ambiguity lies in the definition of a swap, which was finalised in July 2012. Specifically, the CFTC designed a seven-part test to help companies determine whether physical contracts with embedded volumetric optionality should be classified as swaps or
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