The petition calls on the CFTC to amend Regulation 35 (Part 35) to allow for swap and swaption (option on swap) agreements – two-party OTC contracts priced off of agricultural commodity futures – to be cleared through a registered derivative clearing organization (DCO) such as CME or Nymex. Currently, specific permission from the CFTC is required.
According to Agora-X, enacting this amendment would promote the clearing of agricultural derivatives, reduce counterparty credit risks and enhance
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