Grain association praises agricultural swap transaction regulations

No additional regulatory restrictions to be imposed on agricultural swap transactions

The National Grain and Feed Association has commended the Commodity Futures Trading Commission for removing constraints that previously existed for certain types of off-exchange agricultural transactions when it voted unanimously to issue final regulations on agricultural swap transactions.

Specifically, the NGFA praised the CFTC for not imposing any additional regulatory restrictions on agricultural swaps than would apply to non-agricultural swap products. The NGFA noted that safeguards incorporated under the Dodd-Frank law provide “more-than-ample protection in the swaps marketplace for both agricultural and non-agricultural swaps,” and that there was “no compelling reason to place additional (regulatory) burdens on agricultural swaps.”

The rulemaking is part of the CFTC’s ongoing implementation of the Dodd-Frank financial regulatory reform law enacted by Congress last year. The final regulations are scheduled to be published in the Federal Register the week ending August 12.