On May 26, the Commodity Futures Trading Commission proposed amendments to its December 2013 speculative position limits proposal regarding 28 core referenced futures contracts.
The proposed rules would allow certain exchanges and swap execution facilities, subject to CFTC review, to recognize and exempt from federal position limits both enumerated and non-enumerated bona fide hedges, certain spread positions and certain enumerated anticipatory bona fide hedges. The proposal also amends certain definitions, including the definition of (1) bona fide hedging position; (2) intermarket spread position; and (3) intramarket spread position. Further, the proposal delays the establishment and monitoring of exchange-set swaps position limits for exchanges that do not have access to sufficient swap position information.
Katten will publish an advisory providing further details on the proposed rules shortly.
The supplemental notice of proposed rulemaking will be open for public comment for 30 days after publication in the Federal Register.
The proposed rules are available here.