---
kind: "section"
citation: "7 U.S.C. § 27a"
title: "7"
title_heading: "Agriculture"
number: "27a"
heading: "Exclusion of identified banking product"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/27a"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §27a. Exclusion of identified banking product

- (a) **Exclusion—** Except as provided in subsection [(b)](#b) or [(c)](#c)—
  - (1) the [Commodity](/usc/7/1a.md?p=9) Exchange Act ([7 U.S.C. 1](/usc/7/1.md) et seq.) shall not apply to, and the [Commodity](/usc/7/1a.md?p=9) Futures Trading [Commission](/usc/7/1a.md?p=8) shall not exercise regulatory authority under the [Commodity](/usc/7/1a.md?p=9) Exchange Act ([7 U.S.C. 1](/usc/7/1.md) et seq.) with respect to, an [identified banking product](/usc/7/27.md?p=b); and
  - (2) the definitions of “[security-based swap](/usc/7/1a.md?p=42)” in section 3(a)(68) of the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 [[15 U.S.C. 78c(a)(68)](/usc/15/78c.md?p=a-68)] and “[security-based swap](/usc/7/1a.md?p=42) agreement” in section 1a(47)(A)(v) of the [Commodity](/usc/7/1a.md?p=9) Exchange Act [[7 U.S.C. 1a(47)(A)(v)](/usc/7/1a.md?p=47-A-v)] and section 3(a)(78) of the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 [[15 U.S.C. 78c(a)(78)](/usc/15/78c.md?p=a-78)] do not include any identified [bank](/usc/7/27.md?p=a) product.
- (b) **Exception—** An [appropriate Federal banking agency](/usc/7/1a.md?p=2) may except an [identified banking product](/usc/7/27.md?p=b) of a [bank](/usc/7/27.md?p=a) under its regulatory jurisdiction from the exclusion in [subsection (a)](#a) if the agency determines, in consultation with the [Commodity](/usc/7/1a.md?p=9) Futures Trading [Commission](/usc/7/1a.md?p=8) and the [Securities](/usc/7/1a.md?p=41) and [Exchange](/usc/7/1a.md?p=1-D) [Commission](/usc/7/1a.md?p=8), that the product—
  - (1) would meet the definition of a “[swap](/usc/7/1a.md?p=47-A)” under section 1a(47) of the [Commodity](/usc/7/1a.md?p=9) Exchange Act ([7 U.S.C. 1a](/usc/7/1a.md)[47]) or a “[security-based swap](/usc/7/1a.md?p=42)” under that[^1] section 3(a)(68) of the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934; and
  - (2) has become known to the trade as a [swap](/usc/7/1a.md?p=47-A) or [security-based swap](/usc/7/1a.md?p=42), or otherwise has been structured as an [identified banking product](/usc/7/27.md?p=b) for the purpose of evading the provisions of the [Commodity](/usc/7/1a.md?p=9) Exchange Act ([7 U.S.C. 1](/usc/7/1.md) et seq.), the Securities Act of 1933 ([15 U.S.C. 77a](/usc/15/77a.md) et seq.), or the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 ([15 U.S.C. 78a](/usc/15/78a.md) et seq.).
- (c) **Exception—** The exclusions in [subsection (a)](#a) shall not apply to an identified [bank](/usc/7/27.md?p=a) product that—
  - (1) is a product of a [bank](/usc/7/27.md?p=a) that is not under the regulatory jurisdiction of an [appropriate Federal banking agency](/usc/7/1a.md?p=2);
  - (2) meets the definition of [swap](/usc/7/1a.md?p=47-A) in section 1a(47) of the [Commodity](/usc/7/1a.md?p=9) Exchange Act or [security-based swap](/usc/7/1a.md?p=42) in section 3(a)(68) of the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934; and
  - (3) has become known to the trade as a [swap](/usc/7/1a.md?p=47-A) or [security-based swap](/usc/7/1a.md?p=42), or otherwise has been structured as an [identified banking product](/usc/7/27.md?p=b) for the purpose of evading the provisions of the [Commodity](/usc/7/1a.md?p=9) Exchange Act ([7 U.S.C. 1](/usc/7/1.md) et seq.), the Securities Act of 1933 ([15 U.S.C. 77a](/usc/15/77a.md) et seq.), or the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 ([15 U.S.C. 78a](/usc/15/78a.md) et seq.).

## Footnotes

[^1]: So in original.

## Source credit

(Pub. L. 106–554, § 1(a)(5) [title IV, § 403], Dec. 21, 2000, 114 Stat. 2763, 2763A–458; Pub. L. 111–203, title VII, § 725(g)(2), July 21, 2010, 124 Stat. 1694.)

## Notes

### Editorial Notes

### References in Text

The Commodity Exchange Act, referred to in subsecs. (a)(1), (b)(2), and (c)(3), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to this chapter. For complete classification of this Act to the Code, see section 1 of this title and Tables.

The Securities Act of 1933, referred to in subsecs. (b)(2) and (c)(3), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables.

The Securities Exchange Act of 1934, referred to in subsecs. (b)(2) and (c)(3), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.

### Codification

Section was enacted as part of the Legal Certainty for Bank Products Act of 2000, and also as part of the Commodity Futures Modernization Act of 2000, and not as part of the Commodity Exchange Act which comprises this chapter.

### Amendments

2010—Pub. L. 111–203 amended section generally. Prior to amendment, text read as follows: “No provision of the Commodity Exchange Act shall apply to, and the Commodity Futures Trading Commission shall not exercise regulatory authority with respect to, an identified banking product if—

“(1) an appropriate banking agency certifies that the product has been commonly offered, entered into, or provided in the United States by any bank on or before December 5, 2000, under applicable banking law; and

“(2) the product was not prohibited by the Commodity Exchange Act and not regulated by the Commodity Futures Trading Commission as a contract of sale of a commodity for future delivery (or an option on such a contract) or an option on a commodity, on or before December 5, 2000.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.