By Andrew Cross, Crystal Travanti and Tom Watterson of Reed Smith LLP
We have prepared the above-referenced guide to the eligible contract participant ("ECP") definition under section 1a(18) of the Commodity Exchange Act ("CEA"). The guide does not cover every aspect of the ECP definition, but rather focuses on the application of the so-called "entity" and "natural person" ECP tests as:
1) Presented in section 1a(18) of the CEA;
2) Implemented by CFTC Rule 1.3(m); and
3) Interpreted and augmented by CFTC Letter 12-17.
It is our hope that this guide clarifies the key aspects of the ECP definition. Of course, the guide does not constitute legal advice, since any application of the ECP definition must give effect to the unique situations of the counterparties and their swap transaction.
Good day. Good guide? TSR