CFTC Re-proposes Position Limits and Finalizes Aggregation Rule

The Commodity Futures Trading Commission (CFTC or Commission) voted unanimously to approve the Position Limits for Derivatives re-proposal, as well as the Aggregation of Positions final rule. The position limits re-proposal comes in response to comment received from the December 2013 proposal and the June 2016 supplemental proposal.

Chairman Massad provided two reasons for issuing a re-proposal: 1) the public will benefit from seeing the proposal in its entirety to better understand how the various changes work together; and 2) the Commission is in a time of transition and the uncertainty and inconsistency from one year to the next are not helpful to market participants.  He also recognized the fact that there will still be those that are critical of the proposal, but that it is important for the Commission to implement a balanced rule that achieves Congressional objectives.

Commissioner Giancarlo indicated that he “feel[s] comfortable that the proposal before us provides the basis for the implementation of a final position limits rule that [he] could support.” He mentioned that while some of the concerns expressed by market participants regarding the 2011 final rule were addressed, other areas do not appear to have been as well addressed – and that, one more round of public comment is appropriate. Commissioner Bowen supported the re-proposal as it moves the Commission one step closer to the implementation of position limits as directed by Congress.

The comment period for the re-proposal will be open for 60 days after publication in the Federal Register.

Please contact the ACSA office to obtain copies.

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