For questions please contact Kevin Batteh or Kwon Park at (202) 547-3035.
On May 12, the CFTC released its final interpretation on forward contracts with embedded volumetric optionality (EVO). The interpretation identifies when an agreement, contract, or transaction (ACT) would fall within the forward contract exclusions from the “swap” and “future delivery” definitions in the Commodity Exchange Act (CEA), notwithstanding that it allows for variations in the delivery amount.

Although the interpretation was issued jointly with the SEC, it applies solely to the CFTC and does not apply to the exclusion from the swap and security-based swap definition for security forwards or to the distinction between security forwards and security futures products.

Please click on the link below to read the final interpretation in full.