securitization special purpose vehicle

In an interpretive letter published on May 4, the Commodity Futures Trading Commission’s Division of Clearing and Risk (Division) confirmed that a securitization special purpose vehicle (SPV) that is wholly owned by, and consolidated with, a finance company that meets the criteria set out in the “captive finance company exception” found in Section 2(h)(7)(C)(iii) of the Commodity Exchange Act (CEA), may elect the End-User Exception from a clearing requirement determination issued under Section 2(h) of the CEA. The Division’s letter responds to an inquiry of Ford Motor Credit Company LLC (Ford Credit), which sought confirmation that its securitization SPVs satisfy the first element of Section 2(h)(7)(C)(iii) of the CEA, i.e., that the entity’s “primary business” is “providing financing.”
Continue Reading CFTC Determines That Wholly Owned Securitization SPVs of Captive Finance Companies May Elect End-User Exception