CFTC Proposes Supplement To Aggregation Proposed Rules For Position Limits

On September 22, 2015, the Commodity Futures Trading Commission ("CFTC") issued for public comment a supplement (the "Supplemental Aggregation Proposal") to its proposed aggregation rules for position limits for related entities that were issued in November 2013. The Supplemental Aggregation Proposal, if adopted, will in many cases make it easier for closely affiliated entities to obtain an exemption from aggregation of their derivatives positions and, therefore, will permit affiliated entities to engage in a larger amount of overall trading. Under the Supplemental Aggregation Proposal, the key change from the 2013 proposed rules is that a market participant that owns greater than 50% of another entity would be allowed to obtain an exemption from aggregation with respect to positions of the owned entity by filing a notice that includes certifications regarding trading independence with the CFTC under the same process that market participants with 10% to 50% ownership