Legal Definition of Excluded Commodity

What is Legal Definition of Excluded Commodity?

Legal Definition of Excluded Commodity meaning (19) Excluded commodity The term “excluded commodity” means— (i)an interest rate, exchange rate, currency, security, security index, credit risk or measure, debt or equity instrument, index or measure of inflation, or other macroeconomic index or measure; (ii)any other rate, differential, index, or measure of economic or commercial risk, return, or value that is— (I)not based in substantial part on the value of a narrow group of commodities not described in clause (i); or (II)based solely on one or more commodities that have no cash market; (iii)any economic or commercial index based on prices, rates, values, or levels that are not within the control of any party to the relevant contract, agreement, or transaction; or (iv)an occurrence, extent of an occurrence, or contingency (other than a change in the price, rate, value, or level of a commodity not described in clause (i)) that is— (I)beyond the control of the parties to the relevant contract, agreement, or transaction; and (II)associated with a financial, commercial, or economic consequence.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary