On December 5, the Commodity Futures Trading Commission issued final regulations regarding the aggregation of commodity derivatives positions for assessing compliance with CFTC position limits requirements, and re-proposed regulations regarding position limits. These rules were initially proposed in 2011 and then again in 2013 and subject to two supplemental proposals since. In order to assess a person’s compliance with applicable speculative position limits, the CFTC’s new aggregation rules would require the person to aggregate all futures and related options positions (on a futures equivalent basis) and accounts in which the person directly or indirectly controls trading with (1) all positions and accounts in which the person holds a 10 percent or more ownership or equity interest and (2) the positions of any other person with which the person trades pursuant to an express or implied agreement, absent an exemption. These requirements are generally consistent with an existing requirement (click here to access CFTC Rule 150.4) and CFTC policy. However, the CFTC’s new aggregation rules contain a new potential authority for entities within a group that trade independently of each other and have procedures and controls to ensure such independence to disaggregate positions. Separately, the CFTC re-proposed its position limits rules. Compared to its 2013 proposed rules, the Commission’s newly re-proposed requirements: (1) reduce the number of core agricultural, energy and metals futures contracts and their economically equivalent futures, options and swaps (collectively, “referenced contracts”) subject to express oversight by the Commission for position limits purposes (as opposed to exchanges) from 28 to 25; (2) revise spot month, single and all-months positions limits on the 25 referenced contracts; (3) define bona fide hedging to more closely parallel the definition in applicable law (click here to access Sec. 4a of the Commodity Exchange Act, 7 USC § 6a); and authorize persons to apply for non-enumerated hedging exemptions from qualified exchanges even for referenced contracts. The final aggregation rules are scheduled to be effective 60 days after their publication in the Federal Register, during which time the CFTC will accept comments on the proposed position limit rules. (Click here to access a special edition of Between Bridges for a high-level summary of these final and proposed rules.)