The Commodity Futures Trading Commission issued a final rule to formally eliminate certain reporting and recordkeeping requirements for qualified persons not registered with it as swap dealers or major swap participants who enter into trade options with other similar non-registrants. In general, trade options are a type of over-the-counter commodity options that are exempt from most of the requirements of OTC products following passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, trade options are subject to certain swaps reporting requirements or, for non-SDs and non-MSPs, until recently, less onerous reporting requirements utilizing a Form TO. Less than one month ago, staff of the CFTC eliminated the reporting requirements for non-SDs and non-MSPs. The instant rule amendment formalizes this action. Under the CFTC’s rule amendment, non-SDs and non-MSPs will not be subject to even the less onerous swaps reporting requirements and Form TO will be eliminated. In addition, the rule amendment eliminates any swaps-related recordkeeping requirements for non-SDs and non-MSPs in connection with trade option activity, although such entities will be required to provide counterparties who are SDs or MSPs a legal entity identifier. The CFTC also eliminated references in its rules that trade options are subject to position limit requirements. The amended rule will become effective upon publication in the Federal Register. (Click here for a description of trade options and details regarding the CFTC’s staff prior no action relief in the article, “CFTC Provides Reporting Relief to Trade Option Users” in the February 21, 2016 edition of Bridging the Week. Click here for additional information on the amended rule in the article, “CFTC Approves Final Rule Eliminating Certain Reporting and Recordkeeping Requirements for Trade Option End-Users” in the March 18, 2016 edition of Corporate & Financial Weekly Digest by Katten Muchin Rosenman LLP.)