Last week, staff of the Commodity Futures Trading Commission extended and expanded reporting relief to certain persons who purchase and sell trade options. Trade options are options on tangible commodities where (1) the grantor is either a highly sophisticated or financially well-off person or entity (a so-called “eligible contract participant”) or a producer, processor, commercial user of or merchant involved in the relevant commodity and is involved in the transaction for business-related purposes; (2) the option purchaser reasonably believes the grantor to be an eligible grantor; and (3) the option is intended to be physically settled. In general, trade options are exempt from the swap requirements instituted by the CFTC following passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, since Dodd-Frank, trade options have been subject to certain swaps reporting requirements or, for non-swap dealers and non-major swap participants, less onerous reporting requirements utilizing a Form TO. Last year, the CFTC proposed rules to eliminate Form TO entirely; however, these rules have not been adopted. Under staff’s no-action relief, a party to a trade option that has not been subject to the CFTC’s swap reporting requirements in connection with any non-trade option during the prior 12 months is not required to report their trade options for 2015 on Form TO. Other requirements remain, however, for other trade option participants. (Click here for details on the CFTC’s rule proposal in the article, “CFTC Proposes Reduction in Reporting and Recordkeeping Requirements for Trade Options” in the May 3, 2015 edition of Bridging the Week. Click here for more detailed information on CFTC staff’s relief in the article, “CFTC Grants Relief for End Users from Trade Option Filing Requirements,” in the February 19, 2016 edition of Corporate & Financial Weekly Digest by Katten Muchin Rosenman LLP.)