The Commodity Futures Trading Commission further delayed the roll-out of new large trader reporting requirements that initially were adopted during November 2013—the so-called “OCR Final Rule.” Under the OCR Final Rule, the CFTC expanded upon its prior large trader reporting regime, and required the electronic submission of certain large traders’ and position holders’ data on updated forms: new Form 102A to identify holders of large positions, new Form 102B to identify traders that exceed a stated volume of transactions (50 contracts/day on a notional value basis; “volume threshold accounts”) during a single trading day (regardless of end-of-day positions), new Form 102S to identify holders of certain swaps positions, new Form 40/40S to collect information from reporting traders and new Form 71 to collect information on omnibus volume threshold accounts. The OCR Final Rule also obligated certain categories of persons required to submit data to the CFTC to generate and retain certain records on an ongoing basis. Originally, compliance with the OCR Final Rule was required by August 14, 2014, but this date was delayed for all but the recordkeeping elements. Because of the slow development of necessary technology, the CFTC has further delayed the implementation date for requiring the electronic transmission of certain new forms, subject to conditions, as follows: Form 102A, 102B (regarding trading on designated contract markets) and 102S until September 30, 2015; Form 102B (regarding trading on swap execution facilities) until February 13, 2017; and Forms 40/40S and 71 until February 11, 2016. Legacy non-automated reporting requirements and the OCR Final Rule’s recordkeeping requirements are still in effect. Both CME Group and ICE Futures U.S. amended their rules to conform to the OCR Final Rule’s revised implementation dates. The relevant CME Group Rule (561) regarding Form 102A anticipates a three-month phase-in period after the OCR Final Rule becomes mostly effective with a need to subsequently refresh filings using the new Form 102A if the old Form 102 was used during the phase-in time. (Click here for additional information in the article “CFTC Extends Relief From Certain OCR Requirements” in the February 13, 2015 edition of Corporate & Financial Weekly Digest by Katten Muchin Rosenman LLP.)

Compliance Weeds: Sometimes lost in the debate over the Commission’s new proposed position limit rules and rules on aggregation is the fact that a comprehensive scheme involving large trader position reporting, position limits and accountability levels is already in effect under applicable law, CFTC and exchange rules. Moreover, violators of these requirements may be penalized by the CFTC and exchanges. It is important for both brokers and traders to review their policies and procedures to ensure compliance with the many subtle elements of these requirements. (Click here for an overview of the Commission’s proposed new position limit and aggregation rules in the article “CFTC Proposes New Position Limit Rules: Addresses Absolute Limits of 28 Core Futures Products, Aggregation, and Bona Fide Hedging” in the November 5, 2013 edition of what is now known as Between Bridges.)