The Commodity Futures Trading Commission is seeking public comment on a petition by the Chicago Mercantile Exchange Inc. (CME) and the Board of Trade of the City of Chicago, Inc. (CBOT) for an exemptive order that would permit the CME Clearing House to clear certain agricultural swaps (Contracts) without having to comply with the requirements of CFTC Regulation 35.2, which would otherwise prohibit standardized material economic terms and require that the creditworthiness of the parties to the Contracts be a material consideration in negotiating the Contracts. The CME and CBOT are also requesting the CFTC to issue an order permitting the CME Clearing House and clearing members to commingle customer funds associated with the Contracts in customer-segregated accounts. The CFTC is requesting comment on whether it should exempt the Contracts based on the power granted to it by Section 4(c)(1) of the Commodity Exchange Act (CEA) to “promote responsible economic or financial innovation and fair competition” by exempting any transaction or class of transactions from most provisions of the CEA. The deadline for comments is August 21.

http://www.cftc.gov/newsroom/generalpressreleases/2008/pr5515-08.html