Final Rules

CFTC approves final aggregation regulations. The CFTC announced that it has approved final aggregation regulations, a key component of the agency’s existing position limits regime. The effective date for the aggregation of position final rule is February 14, 2017. (12/5/2016) Federal Register: Aggregation of Positions Final Rule.

Proposed Rules

Position limits for derivatives. The CFTC re-proposed rules to amend part 150 of its regulations regarding speculative position limits to conform to the Dodd-Frank Act amendments to the CEA. The re-proposal would establish speculative position limits for 25 exempt and agricultural commodity futures and option contracts, and physical commodity swaps that are “economically equivalent” to these contracts. In connection with setting these limits, the CFTC is re-proposing to update some relevant definitions; revise the exemptions from speculative position limits, including for bona fide hedging; and extend and update reporting requirements for persons claiming exemption from these limits. Comments on this re-proposal must be received by February 28, 2017. (12/30/2016)

Capital requirements of SDs and MSPs. The CFTC proposed to adopt new regulations and to amend existing regulations to implement sections 4s(e) and (f) of the CEA. The CFTC also proposed to amend existing capital rules for FCMs, providing specific capital deductions for market risk and credit risk for swaps and security-based swaps entered into by an FCM. The CFTC additionally proposed several technical amendments to the regulations. Comments on the proposals must be received by March 16, 2017. (12/16/2016) See Fact Sheet and Q&A. Also see Chairman Massad statement and Commissioner Giancarlo statement.

CFTC re-proposes position limits rule. The CFTC announced that it voted unanimously to re-propose regulations implementing limits on speculative futures and swaps positions as called for in the Dodd-Frank Act. The re-proposal will be open for public comment for 60 days after publication in the Federal Register. See Federal Register: Position Limits for Derivatives. Also see the following statements on proposed rule on position limits for derivatives: Chairman MassadCommissioner Bowen, and Commissioner Giancarlo. (12/5/2016)

No-Action Relief

No-action relief issued for DCOs and other reporting entities from certain obligations on cleared swap reporting. The CFTC’s Division of Market Oversight announced time-limited no-action relief to derivatives clearing organizations and reporting entities for certain swaps reporting obligations amended by a CFTC Final Rule published on June 27, 2016. (12/19/2016)

No-action relief issued for entities submitting swaps for clearing with DCOs acting under exemptive orders or no-action relief. The DMO announced time-limited no-action relief to entities submitting swaps for clearing by derivatives clearing organizations operating under CFTC exemptive orders or no-action relief provided by CFTC staff. (12/19/2016)

Other Developments

Chairman Massad announces resignation. Chairman Timothy G. Massad announced that he has tendered to President Obama his resignation as CFTC Chair, effective on January 20, 2017. (1/3/2017)

Staff interpretation on swap dealers’ political contributions. The CFTC’s Division of Swap Dealer and Intermediary Oversight issued an interpretation of Regulation 23.451, which imposes certain limitations relating to political contributions made by swap dealers. This interpretation clarifies the Division’s view that a swap dealer’s contributions for transition or inaugural expenses incurred by a successful candidate are only covered by the rule to the extent that such expenses are incurred by a successful candidate for a position as an official of a governmental Special Entity. (12/23/2016)