CFTC Approves Supplement to Position Limits Proposal

CFTC.com — Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today voted unanimously to issue for public comment a supplement to its December 2013 position limits proposal that will modify the procedures proposed for persons seeking exemptions from speculative position limits for non-enumerated bona fide hedging. Further the proposal would define procedures for recognition of certain anticipatory bona fide hedge positions.

The supplement would provide a new process for exchanges to recognize certain positions in commodity derivative contracts as non-enumerated bona fide hedges or enumerated anticipatory bona fide hedges, as well as to exempt from federal position limits certain spread positions, in each case subject to CFTC review. The proposal also includes corresponding changes to certain regulations proposed in 2013 regarding exemptions from position limits and exchange-set position limits to take into account this new process.

In connection with these changes, the CFTC proposes to further amend certain relevant definitions, including to clearly define the general definition of “bona fide hedging position” for physical commodities under the standards in Commodity Exchange Act section 4a(c). Separately, the CFTC proposes to delay the requirement to establish and monitor position limits on swaps for DCMs and SEFs that lack access to sufficient swap position information.

All other aspects of the December 2013 Position Limits Proposal would remain the same. The supplemental notice of proposed rulemaking will be open for public comment for 30 days after publication in the Federal Register.

Comments on the supplemental notice of proposed rulemaking, which is available on the CFTC’s website, may be submitted electronically through the CFTC’s Comments Online process.

Related articles

  1. The exchange's network will enable a range of market participants to access high-quality crypto data.

  2. Warsaw Stock Exchange Aims to Continue IPOs

    The Nordic and Baltic exchanges had record IPOs and trading volumes.

  3. Deutsche Borse-LSE Merger in Focus

    The firm has acquired Omniex, a platform for institutional crypto trading.

  4. 2021 marked the fourth consecutive year of record-setting trading activity.

  5. Deutsche Börse is supporting the development of carbon derivatives markets in China.