CFTC Proposes New Position Limits for Futures, Options, and Swaps and Amended Aggregation Requirements

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Introduction -

The U.S. Commodity Futures Trading Commission (“CFTC”) has proposed a comprehensive set of regulations imposing speculative position limits on exchange-traded futures and options contracts and economically equivalent derivatives that reference 28 agricultural, metal, and energy commodities (“Proposed Position Limit Rules”). On the same day, the CFTC proposed amendments to its existing requirements for aggregating positions controlled by a single participant for the purpose of applying the proposed position limits (“Proposed Aggregation Amendments”).

This Dechert OnPoint discusses: (i) the recent history of the CFTC's position limits regime, (ii) the new “Referenced Contracts” to which the position limits would apply and the proposed methodology for determining the position limits, and (iii) the requirements for aggregating positions and the proposed expanded circumstances under which aggregation is not required.

Please see full publication below for more information.

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Topics:  Aggregation Rules, CEA, CFTC, Dodd-Frank, Futures, SEC, Swaps

Published In: General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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