On July 29, 2015, the CFTC’s Energy and Environmental Markets Advisory Committee met and heard from a panel on the impact that the initiatives regarding trade options and forwards with embedded volumetric optionality (EVO) will have on energy and environmental markets. In May 2015, the CFTC amended its seven-part guidance on distinguishing forward contracts with embedded volumetric optionality from commodity options and, in a separate rulemaking, the CFTC proposed to narrow the trade option exemption to the swaps regulations applicable to commodity options.
Continue Reading CFTC Holds Energy and Environmental Markets Advisory Committee Meeting to Discuss Impact of Embedded Volumetric Optionality Guidance and Recent Trade Option Proposal