CFTC Withdraws and Re-Issues Proposed Ownership and Control Reports Rule


[authors: Kevin M. Foley, Blake J. Brockway]

On July 26, the Commodity Futures Trading Commission withdrew a prior proposal and issued a new proposed rule relating to the collection of ownership and control information. The proposed rule amends certain aspects of the current position reporting rules and expands the rules to include accounts that trigger volume-based reporting thresholds on a designated contract market (DCM) or swap execution facility (SEF).

The proposed rule divides revised Form 102, the reporting form for special accounts, into three sections. Section 102A would be used to identify special accounts that hold reportable commodity futures or options positions. Section 102B would collect ownership and control information for accounts that meet a specified trading volume. Section 102S would be used to submit Form 102S filings for swap counterparties and customer consolidated accounts with reportable positions. By including Section 102S, revised Form 102 allows large trader reporting for both futures and swaps through a single submission.

New Form 71 (“Identification of Omnibus Accounts and Sub-Accounts”) would be sent, at the CFTC’s discretion, to volume threshold accounts that are identified as customer omnibus accounts. Recipients of Form 71 would be required to provide information regarding any account to which the customer omnibus account allocated trades that triggered the volume threshold. The proposed rule also includes revisions to CFTC Form 40, which is completed by market participants who are identified as large traders. Finally, the proposed rule would permit the electronic submission of Forms 102, 40 and 71.

Comments should be submitted on or before September 24. The proposed rule is available here.


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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