Comment Text:
Meeting with Bunge (Entity Definitions)
Wednesday, February 23, 2011
Memo from
Fajfar, Mark
CFTC Staff :
Gary Gensler
Eric Juzenas
Terry Arbit
David Aron
Mark Fajfar
Julian Hammar
Ryne Miller
External Attendees :
Christine Chochran (CMC)
Thomas Erickson (Bunge)
Daniel Waldman (Arnold & Porter)
Additional Information :
Bunge believes that persons who enter into swaps as part of providing risk management services to unaffiliated parties should not necessarily be treated as swap dealers when the risk management services are provided in connection with the person’s dealing in the physical commodity markets with that unaffiliated party. In this case, Bunge asserts that the swaps are intertwined with and are ancillary to the person’s overall commodities business. They also sought to demonstrate that the use of swaps for risk management in this way has developed over time in connection with the evolution of the commodities markets and, in this context, that it is difficult to separate the person’s swap business from its commodity business.
