On November 13, 2014, the SEC and the CFTC, after consultation with the  Federal Reserve Board, put out an interpretive release on “Forward Contracts with Embedded Volumetric Optionality” in accordance with Section 712(d)(4) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The SEC and CFTC provide clarification on forward contracts that allow for different delivery amounts, and explain when a contract or agreement would qualify for exclusion in regards to the “swap” and “future delivery” definitions from the Commodity Exchange Act (“CEA”) or otherwise would be categorized as a regulated trade option.

The SEC release is available at:

http://www.sec.gov/rules/interp/2014/33-9681.pdf.