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.”
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