Order Excluding Farm Credit System Institutions From the Commodity Exchange Act's Definition of “Commodity Trading Advisor”

Pursuant to the authority under section 1a(12)(B)(vii) of the Commodity Exchange Act (``CEA'' or ``Act''), the Commodity Futures Trading Commission (``Commission'') is issuing an order (``Order'') excluding institutions in the Farm Credit System (``FCS'') from the definition of ``commodity trading advisor'' (``CTA''). The Commission finds that FCS institutions are primarily engaged in lending to U.S. farmers, ranchers, and agricultural cooperatives, and that any commodity trading advice provided by FCS institutions to their clientele is solely incidental to that lending conduct, as required by CEA section 1a(12)(C). Therefore, the Commission concludes that FCS institutions are not entities within the intent of the statutory CTA definition, and that the issuance of this Order excluding them from the definition is appropriate.