CFTC Issues Position Limits Rule Proposal

The CFTC released a supplemental rule to its December 2013 position limits proposal that will modify the procedures proposed for persons seeking exemptions from speculative position limits for non-enumerated bona fide hedging. It would also define procedures for recognition of certain anticipatory bona fide hedge positions. Specifically, the rule proposes to further amend certain definitions, including the general definition of "bona fide hedging position" for physical commodities under the standards in Commodity Exchange Act section 4a(c). The CFTC also proposed to delay the requirement to establish and monitor position limits on swaps for DCMs and SEFs that lack access to sufficient swap position information.