May 18, 2012
Washington, DC –The Commodity Futures Trading Commission (CFTC) today approved a notice of proposed rulemaking that would modify the CFTC’s aggregation provisions for limits on speculative positions. The proposed rulemaking would permit any person with a greater than 10 percent ownership or equity interest in an entity to disaggregate the owned entity’s positions, provided there are protections and firewalls in place to ensure trading decisions are made independently of one another.
This proposed rulemaking is in response to a January 19, 2012, petition of the Working Group of Commercial Energy Firms (WGCEF) filed under section 4a(a)(7) of the Commodity Exchange Act (CEA) seeking relief from the aggregation provisions of rule 151.7. The Commission invites the public and interested parties to comment on the proposed rule. The comment period will be open for 30 days after publication in the Federal Register.
On November 18, 2011, the CFTC published in the Federal Register new part 151, which establishes a speculative position limits regime for 28 physical commodity derivative contracts. Those limits were established under section 4a of the CEA, as amended by the Dodd-Frank Act, which requires the Commission to establish speculative position limits for physical commodity futures and option contracts traded on a designated contract market (DCM), as well as economically equivalent swaps. Section 4a(a)(7) of the CEA gives the Commission authority to provide exemptions to any requirement the Commission establishes under section 4a with respect to speculative position limits.
Specifically, today’s proposed rulemaking:
Last Updated: May 18, 2012