On May 26, the Commodity Futures Trading Commission (CFTC) proposed amendments to its previously proposed rules related to speculative position limits on 28 core referenced futures contracts (the "2016 Amendment"). If adopted, the 2016 Amendment would allow designated contract markets (DCMs) and swap execution facilities (SEFs) to recognize certain non-enumerated bona fide hedging positions (NEBFHs) and certain enumerated anticipatory bona fide hedging positions as well as to grant exemptions from position limits for certain spread positions. The 2016 Amendment also amends certain definitions, including the definition of bona fide hedging position, and delays the establishment and monitoring of exchange-set swaps position limits for exchanges that do not have access to sufficient swap position information.
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