UPDATE1-FACTBOX-CFTC proposes rule for reporting commodity swaps

(adds biofuels not falling under definition of agricultural
commodity)

WASHINGTON, Oct 19 (Reuters) - The U.S. Commodity Futures
Trading Commission proposed four additional rules on Tuesday as
it works to increase oversight of the $615 trillion
over-the-counter derivatives market mandated in the recently
enacted Wall Street reform bill.

The U.S. futures regulator is working on rules for 30 topic
areas, with some analysts predicting the CFTC could propose as
many as 80 rules.

The CFTC plans to release the first draft of its rules by
the end of the year, and must finalize them by July 2011.

Here are details of the new rules:

POSITION REPORTS FOR PHYSICAL COMMODITY SWAPS

Goal: provide data to help the CFTC police position limit
rules for economically equivalent swaps.

Comment period: 30 days

Operational: in 6 to 10 months

* Covers 46 commodities including energy, metals and
agricultural products.

* Required daily for "economically equivalent" swaps from
clearing organizations, their members and swap dealers.

* Threshold for reporting: positions in any one
futures-equivalent month comprised of 50 or more "economically
equivalent" swaps (on a futures-equivalent basis).

* "Economically equivalent" means the swap is priced based
on a futures settlement price, or is a "look-alike" contract to
an existing futures contract.

* About 180 clearing members and swap dealers and five
clearinghouses are expected to have to report.

* Similar to current reporting structure for large
positions in commodity futures contracts traded on exchanges.

* System would be used for swaps position limit data until
swap data repositories are up and running, potentially serving
as the CFTC's main source for data.

* Proposal for position limits to come separately, within
the next month or so.

DEFINITION OF AGRICULTURAL COMMODITY

Goal: needed to help the agency draft rules for
agricultural swaps, and speculative position limits for
agricultural commodities.

Comment period: 30 days

* Includes "enumerated commodities" such as wheat, cotton,
corn, soybeans, livestock, among others.

* Includes commodities made from living organisms and used
for human food, animal feed or natural fiber.

* Includes commodities such as tobacco, horticulture
plants, and lumber.

* Includes contracts based wholly or principally on a
single underlying agricultural commodity that may not
necessarily involve the delivery of the commodity, such as the
Minneapolis Grain Exchange wheat, corn and soybean price index
contracts.

* Includes an index with more than 50 percent of any single
agricultural commodity.

* Excludes an index made up of the prices of several
agricultural commodities.

* Excludes products processed from plants or animals to
create products used for industrial applications, such as
polylactic acid used to make biodegradable packaging.

* Excludes biofuels, such as methane, biodiesel and ethanol
used as fuel.

PROTECTION OF CONSUMER INFO IN FAIR CREDIT REPORTING ACT

Goal: protect consumer information held by entities subject
to CFTC jurisdiction.

Comment period: 60 days

Who will be affected: Futures commission merchants, retail
foreign exchange dealers, commodity trading advisors, commodity
pool operators, introducing brokers, swap dealers and major
swap participants.

* Provides rules for when an entity subject to CFTC
oversight can make solicitations to a customer based on that
individual's information.

* Requires consumer information to be disposed of using
"reasonable" measures

CONSUMER PROTECTIONS IN GRAMM-LEACH-BLILEY ACT

Goal: expands rules to swap dealers and major swap
participants detailing steps that must be taken to protect
nonpublic, consumer information.

Comment period: 60 days
(Reporting by Christopher Doering and Roberta Rampton; Editing
by David Gregorio)