Release: 4942-04
For Release: June 17, 2004

CFTC Seeks Public Comment on Petitions to Eliminate Federal Speculative Position Limits Applicable to Certain Agricultural Futures and Option Markets

WASHINGTON, D.C. – The Commodity Futures Trading Commission (CFTC) has published for public comment petitions by the Chicago Board of Trade (CBT), the Kansas City Board of Trade (KCBT), and the Minneapolis Grain Exchange (MGE) seeking repeal or amendment of the speculative position limits set out in Commission regulation 150.2 (Federal limits). In addition, the New York Board of Trade (NYBOT), while not submitting a formal petition of its own, has submitted a letter in support of the CBT petition.

Federal limits restrict the size of positions that may be held by speculators in the following futures and option markets: CBT corn, oats, soybeans, wheat, soybean oil, and soybean meal; KCBT hard winter wheat; MGE hard red spring wheat and white wheat; and NYBOT cotton No. 2. Federal limits are set and enforced solely by the Commission. Futures and option markets that are not subject to Federal limits are required by law to adopt their own position limitation or accountability provisions for speculators where necessary and appropriate to reduce the threat of market manipulation or congestion. Such provisions are established by exchanges, subject to Commission oversight and enforcement.

Should the Federal limits be repealed, the petitioners would bear sole responsibility for setting position limitation or accountability standards for their futures and option contracts, subject to Commission oversight and enforcement, as is currently the case for futures and option markets not subject to Federal limits.

Interested parties may submit their comments no later than 60 days after the publication of the Request for Comments in the Federal Register. All comments received will be posted on the Commission’s website.

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Media Contacts
Alan Sobba (202) 418-5080
R. David Gary (202) 418-5085
Office of External Affairs

Related Documents
Federal Register Publication
CBT Petition
KCBT Petition
MGE Petition
NYBOT Letter