On April 19th, the CFTC published a new final rule repealing and replacing the CFTC's current regulations concerning commodity options. The Dodd-Frank Act includes commodity options within the statutory definition of "swap." The CFTC's rule confirms that the same rules apply to commodity options as are applicable to other swaps. In addition, the CFTC requests comment on an interim final rule to provide a trade option exemption for certain commodity options that are physically delivered. For a transaction to be within the trade option exemption, the option, the offeror (seller), and the offeree (buyer), as applicable, must satisfy certain conditions, including eligibility requirements, physical settlement, and that the option buyer be a commercial user of the commodity underlying the option. The final rule is effective June 26, 2012. Comments on the interim final rule should be submitted on or before June 26, 2012. Commodity Options