On December 5, 2016, the U.S. Commodity Futures Trading
Commission ("CFTC") reproposed regulations implementing
limits on speculative futures and swaps positions
("Reproposal"). Notably, in the Reproposal, the
CFTC: (1) proposes limits on speculative positions in 25 physical
commodity futures contracts and their "economically
equivalent" futures, options, and swaps; (2) proposes numerous
adjustments to the bona fide hedging position definition; and (3)
proposes to allow exchanges to recognize non-enumerated bona fide
hedging positions and certain enumerated anticipatory hedge
positions, and to grant spread exemptions.
In November 2011, the CFTC passed a final rule on position
limits for futures and swaps to cap the maximum number of
derivative contracts that an entity may purchase or sell over
a set period. However, after industry associations argued to
the U.S. District Court for the District of Columbia
("District Court") that the CFTC misinterpreted the
Commodity
