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ARTICLE · 21 MAY 2018

CFTC Staff Issues Interpretation Regarding Position Limits Aggregation By Passive Investors In Commodity Pools

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On May 2, 2018, staff of the Division of Market Oversight of the Commodity Futures Trading Commission issued an interpretation regarding CFTC Reg. 150.4(b)(1), 17 CFR 150.4(b)(1), which provides an exemption ...

United StatesFinance and Banking
Julian Hammar
Julian Hammar
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On May 2, 2018, staff of the Division of Market Oversight of the Commodity Futures Trading Commission ("CFTC") issued an interpretation regarding CFTC Reg. 150.4(b)(1), 17 CFR 150.4(b)(1), which provides an exemption from the CFTC's position limits aggregation rules for certain passive investors in commodity pools (CFTC Staff Letter No. 18-12).

In general, market participants are required to aggregate all positions in accounts for which the person, by power of attorney or otherwise, directly or indirectly controls trading or holds a 10 percent or greater ownership or equity interest, absent an exemption. CFTC Reg. 150.4(b)(1) provides an exemption from aggregation to a person who is a passive investor (i.e., a person that is a limited partner, limited member, shareholder, or other similar pool participant) that holds a 10 percent or greater ownership or equity interest in a commodity pool, unless the person is excluded by one of the three exceptions contained in

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