CFTC Updates Position Limits Rule

Summary: On September 22, 2015, the Commodity Futures Trading Commission (CFTC or Commission) unanimously approved the publication of a "supplemental" proposed rule on position limits. The supplemental proposal would modify the requirements in the proposed rules regarding the aggregation of positions subject to the Commission's speculative position limits. Specifically, the proposal would modify the eligibility criteria and simplify the process for claiming an exemption from the aggregation requirements for owners of more than 50 percent of another entity. On the same date, the CFTC's Agriculture Advisory Committee (AAC) held a public meeting to discuss the CFTC's 2013 position limits proposal.¹ Among the topics discussed was the possibility of the Commission delegating to the exchanges the responsibility for granting hedge exemptions to position limits. Section I of this alert discusses the Commission's latest supplemental proposal on aggregation and Section II