The ABS industry right now is very focused on the Oct. 12 changes the U.S. Commodity Futures Trading Commission (CFTC) plans to make that would render deals "commodity pools."  

Dodd-Frank amended the Commodities and Exchange Act to include a new definition of commodity pools to explicitly include swaps. The change, according to a Sept. 13 teleconference hosted by Mayer Brown, has created the ambiguity that any ABS that has any swaps in it could potentially be a commodity pool. As such, the sponsor or servicer of an ABS transaction would be responsible for registering as a commodity pool operator.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.