Meeting Date:
Thursday, October 18, 2012
CFTC Staff:
Terry Arbit
David Aron
Herminio Castro
Lee Ann Duffy
Julian Hammar
Kenneth McCracken
Gail Scott
Somi Seong
Jason Shafer
Organization(s):
WSPP, Inc. (WSPP)
Wright & Talisman, PC
External Attendees:
Arnold Podgorsky, Wright & Talisman PC
Patrick Morand, Wright & Talisman PC
Additional Information:
Participants discussed the interpretation in the product definitions concerning oral bookouts and the Brent Interpretation safe harbor for forward contracts. WSPP representatives indicated that WSPP members generally would be in compliance with the interpretation’s requirement that oral bookouts be followed within a commercially reasonable timeframe by a confirmation in some type of written or electronic form. WSPP raised a specific question about whether an electronic recording of a bookout would satisfy this requirement. In addition, WSPP representatives mentioned that members engage in volume bookouts, where multiple bookouts are documented in one transaction, rather than having to document each bookout separately, and inquired whether such volume bookouts would fall within the Brent Interpretation Safe Harbor. Finally, existing language in the WSPP Agreement defining a bookout was discussed.
