The Commodity Futures Trading Commission has proposed to exempt the trading and clearing of certain credit default products that are proposed to be traded on the Chicago Board Options Exchange and cleared through the Options Clearing Corporation (OCC) from any applicable provisions of the Commodity Exchange Act (CEA). The CEA empowers the CFTC to exempt any transaction or class of transactions from most provisions of the CEA if, among other things, the CFTC determines that the exemption would be consistent with the public interest. The CFTC is requesting comment on whether it should exempt the credit default options and credit default basket options to be listed and traded on the CBOE and cleared through the OCC, from provisions of the CEA that might otherwise be applicable to the trading and clearing such transactions. The comment period expires May 29.

http://www.cftc.gov/opa/press07/opa5334-07.htm

http://www.cftc.gov/files/foia/fedreg07/foi070514a.pdf