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Legal Update

CFTC Further Clarifies Commodity Pool Treatment for Certain Securitizations and Provides Additional No-Action Relief for Others

10 December 2012
Mayer Brown Legal Update
The Division of Swap Dealer and Intermediary Oversight of the Commodity Futures Trading Commission (CFTC) issued interpretation and no-action letter No. 12-45, which does three things: it provides interpretive clarification that some securitization entities are not “commodity pools”; it provides conditional no-action relief for certain legacy securitization entities; and it provides time-limited no-action relief until March 31, 2013 for non-exempt securitization entities to allow for more time for further dialogue with CFTC Staff. With this Letter, the CFTC, in effect, seems to be endorsing a broader principle: that a securitization entity would not be treated as a commodity pool if the swaps do not create an “investment exposure.”


  • J. Paul Forrester
    T +1 312 701 7366
  • Carol A. Hitselberger
    T +1 704 444 3522
  • Stuart M. Litwin
    T +1 312 701 7373
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